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[00:00:13]

BUDGET WORK SESSION OF AUGUST 14TH, 2018.

COUNCILMEMBER TREVINO.

>> MAYOR, WE DO HAVE A QUORUM.

>> NIRENBERG: GOOD AFTERNOON, EVERYONE, WELCOME TO OUR CITY COUNCIL BUDGET SESSION.

TIME IS 2:11 P.M. AND WE HAVE TWO ITEMS ON OUR AGENDA.

CITY MANAGER?

>> SCULLEY: LAST THURSDAY ON AUGUST 9TH I PRESENTED THE PROPOSED FISCAL YEAR 2019 BUDGET AND TODAY WE BEGIN A SERIES OF WORK SESSIONS WITH THE CITY COUNCIL TO DISCUSS THOSE MAJOR ITEMS WITHIN THE BUDGET.

TODAY WE'LL BEGIN WITH OUR TRANSPORTATION AND CAPITAL IMPROVEMENTS DEPARTMENT.

IT REPRESENTS THE SECOND LARGEST PORTION OF OUR GENERAL FUND BUDGET, ONLY BEHIND OUR PUBLIC SAFETY DEPARTMENTS, POLICE AND FIRE.

SO IN ADDITION TO TODAY, WE HAVE A TOTAL OF EIGHT COUNCIL WORK SESSIONS ON THE BUDGET COMING UP.

ALL ARE OPEN TO THE PUBLIC.

I HEARD A GROWN ACROSS THE ROOM.

I'M SORRY.

SOME COUNCILMEMBERS HAVE SUGGESTED WE MIGHT DO MORE, BUT AT YOUR PLEASURE, IF YOU WOULD LIKE TO HAVE MORE BUDGET WORK SESSIONS, WE'RE HAPPY TO.

TODAY IS A TWO-PART PRESENTATION, WE'LL TALK ABOUT STREET, SIDEWALKS, DRAIN J -- DRAINAGE AND OUR TRANSPORTATION PLANNING.

WE'LL TALK ABOUT OUR CAPITAL PLAN, AND THEN SECONDLY, OUR CHIEF FINANCIAL OFFICER, BEN GORZELL, IS GOING TO PRESENT THE DEBT PLAN; THAT IS HOW WE FINANCE CAPITAL IMPROVEMENTS FOR THE CITY.

WE HAVE A NUMBER OF GUESTS IN THE AUDIENCE TODAY, AND WE'LL CALL ON THEM FOR SOME EXTRA COMMENTS AS WELL.

SO TODAY -- AND THEN TOMORROW -- TODAY WE'LL DO TRANSPORTATION CAPITAL IMPROVEMENTS.

TOMORROW WE'RE SCHEDULED TO DISCUSS OUR PUBLIC SAFETY DEPARTMENTS, POLICE AND FIRE.

SO WE HAVE A BIG WEEK THIS WEEK.

ADDITIONALLY THURSDAY EVENING, WE'LL BE HOSTING THE FIRST OF OUR COMMUNITY MEETINGS FOLLOWING THE PRESENTATION OF THE PROPOSED BUDGET.

WE'VE DONE A NUMBER OF THOSE OVER THE SUMMER TO GATHER INPUT.

WE'VE HEARD FROM MORE THAN 8,000 RESIDENTS SO FAR ON THEIR PRIORITIES AND OF COURSE WE ARE WORKING CLOSELY WITH YOU AND HAVE FOLLOWED THE GUIDANCE FROM THE MAY 30TH GOAL-SELLING SESSION WHERE WE DISCUSSED COUNCIL PRIORITIES AND WHAT YOU WANTED TO SEE REFLECTED IN THE BUDGET WHICH IS OUR POLICY DOCUMENT.

ON THURSDAY EVENING, THOSE DOORS OPEN AT 5:30 AND PRESENTATIONS, BRIEF PRESENTATIONS, WILL BEGIN AT 6 P.M., AND THEN WE WILL HAVE A NUMBER OF TABLES SET UP SO THAT THE RESIDENTS CAN TALK WITH THE DEPARTMENTS THAT ARE OF GREATEST INTEREST TO THEM.

SO TODAY WE BEGIN WITH OUR CITY ENGINEER, MIKE FRISBIE.

AS YOU KNOW, THE PROPOSED STREETS BUDGET TOTALS 110 MILLION, THIS IS AN INCREASE OF 11 MILLION, AND THIS BUDGET RESPONDS TO OVERALL PRIORITIES.

WE'VE USED THE EQUITY ASSESSMENT.

THIS IS YEAR TWO OF ATTACKING AND RECONSTRUCTING THOSE STREETS THAT NEED THE GREATEST REPAIR THROUGHOUT THE CITY, AND THE ADDITIONAL MONIES WILL ALSO BE USED IN ALL COUNCIL DISTRICTS TO IMPROVE SOME OF THOSE C AND D STREETS.

YOU KNOW THAT TCI RATES ALL OF OUR STREETS, GRADES THEM ALL, A, B, C, D AND F, AND SO WE'LL BE USING THE ADDITIONAL FUNDS TO ADDRESS SOME OF THE WORST STREETS THROUGHOUT THE CITY.

THIS IS ALSO YEAR TWO OF OUR EQUITY ASSESSMENT FOR DISTRICTS 1, 2, 3, 5 AND 10, SO THAT BY THE END OF THIS FISCAL YEAR, ALL OF OUR STREETS ON AVERAGE, HAVE A SCORE OF 70 OR ABOVE THROUGHOUT THE CITY WHICH IS A BEST PRACTICE.

SO WITH THAT, I WILL TURN IT OVER TO MIKE FRISBIE.

HE WILL TALK ABOUT THE TRANSPORTATION -- OH, YES, IN DISTRICT 10, MORGAN'S WONDERLAND, AND IT'S OPEN TO THE ENTIRE CITY.

SO OF THESE SEVEN MEETINGS THAT WE WILL HAVE OUT IN THE COMMUNITY, THEY'RE OPEN TO EVERYONE AND WE'VE TRIED TO PICCOLO OCCASIONS THAT ARE FAMILY FRIENDLY SO THAT RESIDENTS CAN BRING THEIR CHILDREN WHO WILL HAVE ACTIVITIES WHILE THEY LISTEN TO BUDGET PRESENTATIONS AND AGAIN

[00:05:01]

WE'LL HAVE A NUMBER OF DEPARTMENTS THERE TO ANSWER QUESTIONS AND TALK WITH OUR RESIDENTS ABOUT EVERYTHING FROM LIBRARY AND RECREATION SERVICES TO CODE ENFORCEMENT AND ANIMAL CARE.

SO THURSDAY EVENING, BEGINNING AT 5:30, OUT AT MORGAN'S WONDERLAND WITH PRESENTATIONS BEGINNING AT 6 P.M.

>> AUDIENCE: (INDISCERNIBLE).

>> SCULLEY: YES.

THE PLAY GROUND AREA FOR THE CHILDREN, YES.

OKAY.

SO WE'LL BEGIN -- THAT'S WHY WE SELECTED -- I KNOW YOU HAD ASKED ABOUT FAMILY FRIENDLY LOCATIONS AND WE TRIED TO DO THAT.

>> AUDIENCE: (INDISCERNIBLE).

>> SCULLEY: IT WILL NOW.

>> AUDIENCE: RIGHT.

>> SCULLEY: I'M SURE THAT'S ALREADY PLANNED, BUT WE'LL MAKE SURE --

>> AUDIENCE: IT'S FABULOUS, IF PEOPLE HAVEN'T GONE, YOU COULD KILL TWO BIRDS WITH ONE STONE, AND GO TO THE PROGRAM, BUT ALSO ENJOY THE PARK.

>> SCULLEY: HOPEFULLY TIRE THE KIDS OUT BEFORE THE PRESENTATION BEGINS.

NONETHELESS, THAT WILL BE THURSDAY EVENING AND THEY'RE ALL POSTED ON OUR WEBSITE SO THAT EACH OF THE MEETINGS THAT WE'RE HAVING OUT IN THE COMMUNITY -- OKAY.

WITH THAT, MIKE IS GOING TO TALK ABOUT WHAT IS PROPOSED IN THIS BUDGET TO TAKE CARE OF OUR STREETS.

YOU KNOW WE MAINTAIN MORE THAN 4,000 MILES OF STREETS IN OUR 500-PLUS SQUARE MILES, SO MIKE WILL TALK ABOUT THAT AS WELL AS THE FUNDING SOURCES TO ADDRESS NOT ONLY STREETS AND SIDEWALKS BUT THE CITY'S CONTRIBUTION TO VIA AND OUR OTHER CAPITAL IMPROVEMENTS INCLUDING THE GENERAL OBLIGATION BOND PROGRAM.

[1. 18-4693 Staff presentation of the FY 2019 Proposed Budget focusing on, but not limited to, the following City Departments: [Sheryl Sculley, City Manager; Justina Tate, Director, Management and Budget] A. Transportation and Capital Improvements Department]

SO WITH THAT, MIKE FRISBIE, OUR CITY ENGINEER AND DIRECTOR OF TRANSPORTATION AND CAPITAL IMPROVEMENTS.

>> THANK YOU, SHERYL.

OH, WOW, THAT'S A FIRST.

WELL, GOOD AFTERNOON, THANK YOU, SHERYL, GOOD AFTERNOON, MAYOR AND COUNCIL, IT'S AN HONOR TO PRESENT TCI'S PORTION OF THE BUDGET TODAY, BUT I WANT TO START BY INTRODUCING TONIGHT'S STARTING LINEUP OVER HERE, SO AT POINT GUARD OVER SUPPORT SERVICES, CHRISTINA CHAPMAN, THE PROFESSOR GUARD.

NEXT TO HIM AT POWER FORWARD OVER STREETS, ANTHONY, OUR OTHER POWER FORWARD OVER PROJECT DELIVERY, AND TUCKED IN THE CORNER OVER HERE, OUR CENTER, CENTER OF ATTENTION, OVER TRANSPORTATION ART THE BEARD RINEHART.

YES.

OKAY.

SO LET'S GET AFTER IT.

LOTS TO COVER TODAY.

SO WE HAVE A MISSION OF WHAT WE DO.

YOU CAN SEE IT THERE, THROUGH INNOVATION AND DEDICATION, WE BUILD AND MAINTAIN SAN ANTONIO'S INFRASTRUCTURE, BUT THE QUESTION IS WHY.

AND THAT'S BEEN THE QUESTION OF OUR EQUITY ASSESSMENT PROCESSES IS WHY DO WE DO WHAT WE DO? AND YOU CAN SEE HERE OUR WHY STATEMENT AT THE BOTTOM.

TCI WORKS TO ENSURE OUR RESIDENTS HAVE SAFE, MULTI-MODAL ACCESS.

SO THAT'S THE WHY, A LOT OF DETAIL RELATED TO THAT.

WE HAVE A BIG INVENTORY OF SERVICES.

YOU CAN SEE THE INFRASTRUCTURE THERE FROM, AS SHERYL MENTIONED, OVER 4,000 MILES OF STREETS.

GOT OVER 5,000 MILES OF EXISTING SIDEWALKS.

THE PAVEMENT MARKINGS, BICYCLE FACILITIES, HUNDRED SIGNALIZED INTERSECTIONS, 425 BRIDGES, WE MOW 5400 ACRES OUT THERE, WE HAVE 145 LOW WATER CROSSINGS THAT WE CONTINUE TO REPLACE WITH BRIDGES OVER TIME, AND WE'VE GOT 1900 MILES OF STORM WATER NETWORK THROUGHOUT THE CITY.

THEN HERE ARE THE MAJOR PROGRAMS THAT YOU'RE ALL FAMILIAR WITH, THE FIVE YEAR IMP, THE BOND PROGRAM, THE MULTI-MODAL TRANSPORTATION PLAN, PED AND BIKE SAFETY.

3-1-1 RESPONSES, SO HERE IS A QUESTION THAT YOU THINK ABOUT, WHAT WOULD BE FOR OUR BUSINESS THE TOP FIVE 3-1-1 REQUESTS IN OUR BUSINESS, NUMBER ONE, AS YOU WOULD EXPECT, POTHOLES, POTHOLES NUMBER ONE.

NUMBER TWO, TRAFFIC SIGNAL OPERATIONS, GREEN LIGHT, GREEN BULB DOESN'T WORK, THERE'S A SIGNAL KNOCKED DOWN, PAVEMENT REPAIRS, TRAFFIC SIGNS MISSING AND DOWN AND ALSO TRAFFIC SIGNAL TIMING REQUESTS, THOSE ARE THE MAJOR 3-1-1, THEN OF COURSE WE'VE GOT OUR CAPITAL IMPROVEMENT PROGRAM AND THE UNDERGROUND TELEVISING SYSTEM.

SO IF YOU LOOK AT OUR 2019 BUDGET PROPOSAL AT 239 MILLION, YOU CAN SEE THE 7 FUNDS AROUND THE CIRCLE THERE, FROM GENERAL FUND, AND YOU CAN SEE -- I'M GOING BREAK DOWN, WE'RE PROPOSING OVERALL 19 POSITIONS TO BE ADDED DUE TO THE LARGER STREET MAINTENANCE EFFORT, DUE

[00:10:02]

TO THE LARGER BOND EFFORT AND SO FORTH.

BUT WE'LL GET INTO THE DETAILS OF EACH OF THESE FUNDING CATEGORIES.

SO FIRST THE GENERAL FUND BREAK DOWN, ROUGHLY 130 MILLION.

YOU CAN SEE THE BIG EFFORTS THERE, TRAFFIC ENGINEERING AND OPERATIONS, STREET MAINTENANCE, BIG CHUNKS OF THAT, YOU'VE GOT THE NAMP PROGRAM, VIA STREET MAINTENANCE, THE VIA CONTRIBUTION IS A KEY, 10 MILLION, 4.3 LAST YEAR, RAMPED UP TO NOW A CONTINUOUS LEVEL OF THE 10 MILLION AS RECOMMENDED: FOR THE PRESENTATION HERE, THERE'S THESE SIX MAJOR CATEGORIES, STREET MAINTENANCE GOING UP TO 110 MILLION, SIDEWALKS, 19 MILLION.

PEDESTRIAN SAFETY AND TRAFFIC, THREE MILLION.

I MENTIONED THE VIA 10 MILLION, AND THE STORM WATER 13.8 MILLION, AND THE BIG BOND PROGRAM AT 850 MILLION.

SO LET'S START WITH STREETS.

WE DO COMPARISONS, YOU KNOW, LAST YEAR WAS HERE TO ANCHORAGE, ALASKA.

IF YOU WANT TO LOOK AT THE LONGEST RIVER IN THE WORLD, THE AMAZON, THAT IS EQUIVALENT OF OUR STREET NETWORK, IF YOU PUT THE STREETS END TO END, IT IS EQUIVALENT WITH THE LONGEST RIVER IN THE WORLD.

A LITTLE TRIVIA FOR YOU THERE.

SO ALSO AS WE HAVE GONE THROUGH THE EQUITY ASSESSMENT, SPECIFICALLY RELATED TO STREETS.

SO WHY DO WE DO WHAT WE DO WHEN IT COMES TO THE STREET MAINTENANCE.

THE STREET MAINTENANCE PROGRAM INCLUDES QUALITY OF LIFE FOR RESIDENTS BY ENSURING THE SAFETY OF THE COMMUNITY.

SO WE DON'T WANT PEOPLE TO HAVE TO THINK ABOUT THE CONDITION OF THE STREET.

THEY HAVE OTHER THINGS TO BE CONCERNED WITH IN THEIR OWN LIVES, AND THEN WE HAVE SHORT-TERM OUTCOMES.

YOU CAN SEE HERE.

AND LONG-TERM OUTCOMES AS WELL.

AND I WANT TO PAUSE ON THE -- ON ONE OF THESE LONG-TERM OUTCOMES.

SO COMMUNITY TRUSTS TCI TO BE RESPONSIVE AND ACCOUNTABLE, OKAY? SO THIS ONE, I WOULD SAY WE HAVE SOME AWARD-WINNING PROJECTS.

WE HAVE SOME -- A LOT OF PROJECTS THAT WERE -- THAT WERE HANDLED WELL, THE CONTRACTOR DID GOOD, AND WERE SUCCESSFUL.

WE HAVE HAD SOME FAILURES.

AND SO WE HAVE TO CONTINUOUSLY GET BETTER.

COUNCILWOMAN VIAGRAN, YOU REMEMBER A FACILITY PROJECT THAT DIDN'T GO WELL.

COUNCILMAN TREVINO, YOU REMEMBER SOME SIDEWALK PROJECTS, ONE THAT IS FINISHING UP NOW, THAT DID NOT GO WELL.

SO ONE OF THE THINGS THAT WE'RE DOING IS LOOKING AT THE WAY WE PROCURE CONTRACTORS.

WE'RE ALSO OPENING UP THE WHOLE COMMUNICATION PROCESS FOR OUR PROJECTS, WHETHER IT'S A OVERLAY WHERE WE'RE IN AND OUT IN A WEEK, OR A BIG BOND PROJECT THAT WE'RE THERE FOR 18 MONTHS OR ANYTHING IN BETWEEN, WE NEED TO GET BETTER AT OUR PUBLIC RELATIONS COMMUNICATIONS PIECE WITH THE COMMUNITY SO THEY'RE BETTER INFORMED.

IN F.Y. 19 EARLY HERE, WE'RE GOING TO BE REALLY EVALUATING THAT AND MAKING SURE THAT'S AS ROBUST AS IT CAN BE SO THAT WE CAN GET BETTER.

SO BUT AGAIN, THAT IS SOMETHING THAT WE CAN -- YOU CAN GAIN TRUST AND YOU CAN LOSE IT EASILY WITH -- FROM ONE PROJECT TO ANOTHER, SO WE'RE GOING TO CONTINUE TO SHORE THAT UP.

OKAY.

FOR STREET, WE HAVE THE $110 MILLION INVESTMENT.

YOU KNOW, THE BACKGROUND OF -- IN F.Y. 17 WE HAD 64 MILLION, AND THEN LAST YEAR, CITY COUNCIL APPROVED REALLY A TWO YEAR PROGRAM TO GET THOSE BOTTOM FIVE DISTRICTS THAT WERE BELOW THE 70 AVERAGE PAVEMENT CONDITION INDEX UP TO 70, AND SO THAT'S WELL ON ITS WAY, AND THAT'S -- SO OF THE 110 MILLION NOW, YOU'VE GOT THE 64 MILLION PLUS THE 35 THAT WAS IN FY18 AS WELL FOR THE PCIS AND THEN NOW AN ADDITIONAL 11 MILLION THAT WE'RE TARGETING THOSE C AND D STREETS.

YOU CAN SEE THE NUMBERS HERE.

WE'VE GOT INCREASED PROJECTS FOR F.Y. 19, 1250 STREET MAINTENANCE PROJECTS ALL THROUGHOUT THE CITY.

OKAY.

SO IF WE LOOK AT EQUITY FOR STREET MAINTENANCE, EQUITY FOR INFRASTRUCTURE, YOU KNOW, TAKING CARE OF THOSE WORST SITUATIONS IN THE OLDEST PARTS OF OUR CITY FIRST, AND SO THAT'S THE EMPHASIS HERE IS TO GO WITH THOSE C AND D STREETS, BEFORE THEY TURN INTO F STREETS, THEY'RE ON THEIR WAY TO AN F STREET, SO BEFORE THEY FAIL, WE CAN GET IN THERE WITH A OVERLAY AND MAKE THEM NEW AGAIN, BASIC PAVEMENT REPAIRS, THE OVERLAY AND MAKE THEM NEW.

THE GOAL WAS TO GET INTO THE OLDEST PARTS OF THE CITY, EVERYTHING WITHIN LOOP 410, EXCEPT FOR DISTRICTS 8 AND 9 THAT DON'T GO INTO LOOP 410, WE'RE CAPTURING THE OLDEST PARTS OF THOSE DISTRICTS, AND WITH THE

[00:15:01]

11 MILLION, SO SOME WOULD SAY WHY NOT ADDRESS THE F STREETS? SO AS YOU KNOW, FROM PREVIOUS DISCUSSIONS, WE CAN ADDRESS A C AND D STREET WITH AN OVERLAY FOR ABOUT 450,000 A MILE, 450.

AN F STREET IS GOING TO REQUIRE RECONSTRUCTION AND THAT IS 2.5 MILLION.

SO WE WOULD NOT GET FAR WITH 11 MILLION IN ALL THE DISTRICTS, SO THAT'S THE IDEA, PREVENT THEM FROM GOING INTO FS, SO REALLY FOR THE F STREETS, WE NEED TO BE FOCUSED SOME IN THE ANNUAL IMP PROGRAM, BUT WE'VE GOT TO HIT A BIG BOND PROGRAM WITH IT, THE NEXT BIG BOND SETTING ASIDE 2, 300 MILLION TO TARGET F STREETS WOULD LIKELY BE A GOOD RECOMMENDATION.

WE ARE RECOMMENDING 9 POSITIONS BE ADDED IN THE BUDGET FOR STREET MAINTENANCE, AND YOU CAN SEE, YOU KNOW, WE'VE GONE FROM HISTORICALLY DOWN IN THE 30 MILLION RANGE UP TO 110 MILLION, SO TO BE ABLE TO HANDLE THAT WORKLOAD, THAT IS THE RECOMMENDED BUDGET.

WHAT WE DID DO WHEN THE BOND PROGRAM IN 2012 WAS TAPERING OFF, WE MOVED FIVE POSITIONS OVER TO HELP WITH THE STREET MAINTENANCE PROGRAM, SINCE IT WAS GOING.

OF COURSE NOW THAT THE BOND PROGRAM IS REALLY GOING, WE'VE GOT TO HAVE THEM FOCUSED ON THE BONDS, SO THAT'S WHY WE NEED ADDITIONAL POSITIONS.

JUST A LITTLE UPDATE ON OUR POTHOLE PATROL CAMPAIGN.

WE SURVEYED ALMOST 4700 PEOPLE THROUGH SOCIAL MEDIA AND ALSO HARD COPY SURVEYS, A LOT OF DIFFERENT EVENTS THROUGHOUT THE CITY.

80% OF THE RESPONDENTS SAW POTHOLES BUT DID NOT REPORT THEM.

OKAY? SO WE'VE GOT TO WORK ON THAT, RIGHT? 51% OF RESPONDENTS DID NOT KNOW HOW TO REPORT THEM.

OKAY? SO THAT'S, AGAIN, WE INITIATED MORE PR ON THIS BACK IN APRIL, AND THE NEW 3-1-1 APP HAS BEEN RELEASED, SO WE EXPECT TO HAVE A RECORD NUMBER OF POTHOLES REPAIRED THIS YEAR AT 80,000 POTHOLES SO THE CAMPAIGN IS WORKING AND WE'RE GOING TO CONTINUE THAT EFFORT.

PAVEMENT MARKING, WE'RE GRATEFUL, I KNOW, MAYOR, YOU INITIATED THE CONCEPT, EVERYBODY WAS SUPPORTIVE OF GOING UP TO 5.8 MILLION FOR STRIPING, SO HAPPY TO REPORT WE'RE AT 94% COMPLETE ON THE MILEAGE PLAN FOR THIS FISCAL YEAR.

WE WILL BE DONE A MONTH EARLY IN THE FISCAL YEAR, SO YOU'RE SEEING IT THROUGHOUT YOUR DISTRICTS, MORE STRIPING, IT'S LOOKING GOOD OUT THERE.

THIS IS NOT PAINT THAT GOES DOWN.

THIS IS THE THERMO PLASTIC STRIPING.

I'LL JUST PASS IT AROUND.

IT'S HEAVY DUTY, HEAVY DUTY, IT'S GOING TO LAST, YOU KNOW, THREE TO FIVE YEARS, SO THAT IS MAKING SOME BIG IMPROVEMENTS.

OKAY, THE NEXT FUNDING CATEGORY IS THE ADVANCED TRANSPORTATION DISTRICT FUNDING.

SO YOU CAN SEE THE BREAK DOWN.

I KNOW YOU'RE FAMILIAR WITH THE ATD.

IT'S .25% SALES TAX, RESTRICTED USE FOR TRANSPORTATION PROJECTS SO THE REVENUE IS SHARED, VIA GETS HALF, THE CITY A QUARTER AND TXDOT A QUARTER.

TO ORIENT YOU ON THE PIE CHART HERE, YOU HAVE REVENUES ON THE OUTSIDE OF THE PIE CHART AND THEN THE EXPENSES ON THE INSIDE HERE.

YOU KNOW, YOU'VE GOT OF COURSE SIDEWALKS IN THERE.

YOU'VE GOT STREETS, SIGNALS, PEDESTRIAN SAFETY, THE BIKE PROGRAM, OUR INTELLIGENT TRANSPORTATION SYSTEM PROGRAM, AND OUR MOBILITY AND TRANSPORTATION PROJECT PROGRAM, SO I'M GOING TO GO INTO THAT A LITTLE BIT MORE DETAIL.

SO FOR SIDEWALKS, AGAIN, AS WE WENT THROUGH THE EQUITY ASSESSMENT PROCESS, WE ESTABLISHED A WIDE STATEMENT AS WELL, TO PROMOTE CONNECTIVITY, MOBILITY AND A SAFE AND HEALTHY COMMUNITY.

SO LOOKING TO FILL THOSE GAPS IN A PRIORITY WAY.

SO WE'VE BEEN THROUGH THE TRANSPORTATION SUBCOMMITTEE, FULL B SESSION.

WE HAD THE BUDGET WORKSHOP AS WELL, TALKING ABOUT MOVING TOWARD AN OBJECTIVE CRITERIA FOR HOW TO PRIORITIZE SIDEWALK PROJECTS THROUGHOUT THE CITY.

YOU CAN SEE SOME SHORT-TERM OUTCOMES, LONG-TERM OUTCOMES AS WELL.

SO FOR SIDEWALKS, I KNOW YOU KNOW THE PICTURE HERE OF ABOUT 1800, 1900 MILES OF GAPS OUT THERE.

AND LOOKING TO FILL THOSE, WE'RE TRANSITIONING TO THAT OBJECTIVE CRITERIA, BUT RIGHT NOW WE'RE 86% COMPLETE WITH THIS FISCAL YEAR'S PROGRAM, WELL ON OUR WAY TO GET THAT COMPLETE, SO THE 19 MILLION THERE IS SHOWN BETWEEN 9 MILLION IN ATD AND THEN 10 MILLION IN THE BOND PROGRAM.

HERE IS THE PRIORITIZATION CRITERIA THAT WE'VE MASSAGED, WORKED ON WITH YOU ALL THROUGH A PROCESS, YOU CAN SEE ON A HUNDRED POINT SCALE, PEDESTRIAN SAFETY UP THERE AT SCALES, WE

[00:20:02]

HAVE GOOD SIDEWALKS TO SCHOOLS, SIDEWALK ACCESS TO THE BUS STOPS, AND WE HAVE SIDEWALKS ON OUR BUSY STREETS, THOSE ARTERIAL STREETS, ACCESS TO CLINICS AND HOSPITALS, MOST BIG HOSPITALS HAVE SIDEWALKS, BUT THIS IS MORE GEARED TOWARD THOSE SMALLER DOCTORS OFFICES WHERE PEOPLE FROM THE NEIGHBORHOOD ARE GOING TO WALK TO THE DOCTOR'S OFFICE OR BE IN A WHEELCHAIR AND GET TO THE DOCTOR'S OFFICE.

SO THERE'S FLEXIBILITY IN THE IMP WITH YOU ALL, BUT WE'RE STARTING TO MIGRATE TOWARD THIS EFFORT.

OKAY.

ON THE BIKE PROGRAM, WE HAVE ABOUT 315 MILES OF BIKE NETWORK THROUGHOUT THE CITY, THAT INCLUDES 65-MILES IN THE LINEAR CREEKWAY SYSTEM WHICH A GREAT SYSTEM AS WELL, BUT BETWEEN THE BIKE LANE, THE BIKE PATHS, AND BIKE ROUTES, WE'VE GOT THE MILEAGE THERE.

YOU CAN SEE ON THAT LOWER RIGHT, I WANTED TO POINT OUT NORTH ELLISON DRIVE, HOW, YOU KNOW, WHEN WE RESURFACE A STREET, WE LOOK AT THE STRIPING TO SEE WHAT CAN WE DO, YOU KNOW, THAT'S A BUYING LANE SETUP, BUT WE'VE GOT A BUFFER BETWEEN THE TRAVEL LANE AND THE BIKE LANE, SO ANY TIME WE CAN GET MORE SEPARATION BETWEEN PEDESTRIANS IN TRAFFIC, CYCLISTS IN TRAFFIC, WE'RE GOING TO DO THAT THROUGH EITHER PHYSICALLY IF WE CAN, LIKE SOME OF THESE ARE OFFSTREET ACCOMMODATIONS FOR BIKES AND PEDS.

IF WE'RE NOT ABLE TO DO THAT, THEN WE WANT TO DO IT IN THE STREET, CREATE MORE OF A BUFFER AND SEPARATION.

YOU CAN SEE ALSO IN THE UPPER RIGHT SOME GREEN LANES WHERE WE PUT DOWN THE GREEN THERMO PLASTIC FOR THE BIKES WHERE THERE'S A CONFLICT POINT WITH THE -- WITH THE TRAFFIC.

OUR INTELLIGENT TRANSPORTATION SYSTEM, I KNOW COUNCILMAN PALLAES, WE'VE TALKED ABOUT HOW TO GO HIGH TECH.

YOU CAN SEE THE LIST OF FUNDING CATEGORIES HERE.

IN THERE, I KNOW, ART RINEHART HAS BEEN OUR LEAD IN THIS AREA OVER TRANSPORTATION.

WE'VE GOT THE REQUEST FOR INFORMATION OUT ON AUTONOMOUS VEHICLES JUST TO FIND OUT FROM THOSE ENTREPRENEURS OUT THERE WHAT IS THE LATEST THAT CAN BE APPLIED HERE IN SAN ANTONIO.

WE'VE GOT AN ADAPTIVE TRAFFIC SIGNAL PILOT OUT IN D8 THAT IS ABOUT READY TO BE TESTED OUT, SO THAT'S USING A LOT OF DETECTION OUT THERE.

SO THAT THE DATA CAN BE THERE ABOUT REALTIME TRAFFIC, AND THEN TRAFFIC CAN BE THE SIGNALIZATION AND SO FORTH CAN CHANGE MORE DYNAMICALLY SO THAT IS BEING TESTED OUT AS WELL.

SA TRIP, THE SAN ANTONIO REALTIME TRAVELER INFORMATION PORTAL FOR SOUTHWEST MILITARY AND BLANCO ROAD, THOSE ARE -- HAVE BEEN IN PLAY WITH DETECTION THAT COME BACK TO OUR CENTRAL HUB FOR OUR TRAFFIC MANAGEMENT CENTER AT TRANSGUIDE AND THAT IS ALREADY SHOWING REDUCED TRAVEL TIMES ON THOSE CORRIDORS BASED ON THE BETTER DETECTION, BETTER TRAFFIC SIGNAL CONTROL, SO REALLY PUSHING THE LIMIT ON SOME OF THOSE EFFORTS.

SA TOMORROW, WE HAVE, YOU KNOW, WE'VE RECEIVED MPO FUNDING, $4 MILLION FROM THE MPO TO WORK ON SOME CORRIDOR STUDIES, GET THEM READY FOR THE NEXT BOND PROGRAM.

SO THAT -- THAT MATCH FOR THIS YEAR IS IN THE PROPOSED BUDGET.

THE MULTI-MONTH -- MULTI--MODAL PLAN, WE'RE GOING TO CONTINUE THE GROWTH PLAN, THE MULTI-MODAL PLAN HAS A SHORT-TERM IN THERE WITH A LOT OF PROJECTS.

WE'LL CONTINUE TO DO THAT.

AND THEN THE TRANSPORTATION DEMAND MANAGEMENT EFFORTS, THERE IS A POSITION IN THE BUDGET PROPOSED TO LEAD THAT EFFORT UP.

YOU KNOW, THAT STARTED WITH A PROCESS, COUNCILMAN SALDAÑA, SANDOVAL, WERE INSTRUMENTAL IN STARTING THAT EFFORT, WE HAVE A COMMITTEE PUT TOGETHER OVER THE COURSE OF THIS LAST YEAR THAT ART KIND OF LED WITH THE COMMUNITY, AND A LOT OF GREAT IDEAS THERE, BUT THE WHOLE IDEA HERE OF TRANSPORTATION DEMAND MANAGEMENT, YOU CAN SEE 79% OF OUR COMMUTERS DO THAT, THEY'RE SINGLING OCCUPANTS, SO HOW DO YOU CHANGE THAT, YOU KNOW, THROUGH A VARIETY OF WAYS, AND TRY TO -- TRY TO CHANGE THE RUSH HOUR CONGESTION THAT'S OUT THERE.

THE LATEST NUMBERS FOR THE VISION ZERO EFFORT, VISION ZERO, COUNCIL POLICY TO GET TO ZERO TRAFFIC-RELATED FATALITIES, AND, YOU KNOW, EACH YEAR HAS BEEN UP AND DOWN A LITTLE BIT.

[00:25:01]

SO ORIENT YOU ON THIS BAR CHART, YOU HAVE THE VEHICLE FATALITIES FIRST FROM YEAR-TO-YEAR, SO YOU CAN SEE THERE, YEAR-TO-DATE, IS THE -- SO THIS YEAR IS THE GRAY BAR.

SO WE GOT -- IN 2015, I'M SORRY, IN -- THIS YEAR WE'VE HAD 50 PEOPLE DIE IN VEHICLE CRASHES SO FAR, OKAY? WE'VE HAD NINE DIE IN MOTORCYCLE CRASHES.

WE'VE HAD 31 PEDESTRIANS DIE THIS YEAR.

THIS IS SINCE JANUARY.

AND FOUR CYCLISTS DIE, OKAY? SO WE'RE HAVING A HORRIBLE YEAR FOR THAT.

IT'S VERY SIMILAR TO 2016.

THERE CAN BE A LOT OF FACTORS, IT'S REALLY HARD TO KNOW EXACTLY, BUT WE KNOW WE HAVE A LOT OF WORK TO DO, AND IT COMES BACK TO THOSE FIVE ES, SOME OF THOSE CRITICAL FIVE ES OF THE ENGINEERING, THE ENFORCEMENT, THE EDUCATION PROCESS OUT THERE, THE EVALUATION, THE DATA.

SO A LOT OF WHAT WE'VE BEEN DOING IS RELATED TO ALL OF THOSE, WE COMPLETED THIS YEAR THE SEVERE PEDESTRIAN INJURY AREA, THE SBIA REPORT WHICH TAKES THE CRASH DATA FROM 2011 AND 2015 AND IDENTIFIES THOSE KEY AREAS.

I THINK AS WE'VE TALKED BEFORE, 3% OF THOSE FATALITIES ARE HAPPENING OR THE PEDESTRIAN FATALITIES ARE HAPPENING ON 1% OF OUR ROADWAYS, ARTERIAL STREET, THE BUSY STREETS, THAT'S WHERE WE NEED TO GET IN THERE AND WORK THE IMPROVEMENTS OUT THERE.

THIS YEAR WE WERE IN 28 SCHOOLS AND WE HAD A 74 TOTAL OUTREACH EVENTS.

WE'VE REACHED 17,000 PEOPLE THIS YEAR WITH THE VISION ZERO MESSAGE, BUT IT'S NEVER GOING TO BE ENOUGH.

WE NEED EVERYBODY TO HELP.

GOT TO BE SAFE OUT THERE, WHETHER YOU'RE DRIVING, BIKING, WALKING, GOT TO REALLY PAY ATTENTION OUT THERE, AND THEN WE'VE GOT TO DO ALL WE CAN AS A CITY.

WITH PROJECTS.

OKAY.

ONE OF THE WAYS TO DO THAT WITH THE EDUCATION IS THE SAFE DRIVER CONTEST.

HOPEFULLY MOST OF YOU ARE PART OF THAT, AND INTERESTING TO SEE HOW WELL YOU'RE DOING.

WE HAVE OVER 14,000 PEOPLE IN SAN ANTONIO THAT HAVE THE APP.

14,000.

HOW DOES THAT COMPARE TO OTHER CITIES? BOSTON HAD 5400.

SEATTLE HAD 4100.

SO WE'RE AT OVER 14,000, WHICH IS GREAT.

SO A SPECIAL THANKS TO ART PALBERRY, OUR COMMUNICATIONS LEAD, AND REALLY A BIG THANKS TO USAA, THE SPONSOR, BY THE END, WHICH IS ON SEPTEMBER 3, 76 PEOPLE WON THROUGH THE CONTEST.

EVERY OTHER WEEK THERE'S SOME WINNERS, FOR THE TOTAL OF ABOUT 62,000 CASH AWARDS.

SO A LOT OF MONEY GOING OUT, BUT IT'S THE ATTENTION THAT IS BEING DRAWN TO IT THAT HAS BEEN VERY SUCCESSFUL.

SO THE SCHOOL PEDESTRIAN PROGRAM, WE'RE PROPOSING GOING INTO THE FIFTH YEAR OF THE PROGRAM, WHICH IS A MILLION DOLLARS PER YEAR.

WE'RE REALLY IN GREAT SHAPE.

YOU CAN SEE THE GOAL THERE TO CONTINUE TO FUND PEDESTRIAN SAFETY FACILITIES, PROVIDE AND MAINTAIN RELIABLE AND SAFE ACCESS TO SCHOOLS, SO REPLACING ALL THE SIGNAGE, UPGRADING TO THE FLASHING BEACONS, MAKING SURE THE CROSSWALKS ARE SHARP, SO THE INVENTORY, WE'VE GOT OVER 1,000 SCHOOL ZONES, OVER 1,000 SCHOOL ZONE FLASHERS, 2300 CROSSWALKS, SO BIG EFFORT, BUT WE'RE COVERING THE CITY VERY WELL.

WE'RE AT 98% COMPLETE FOR THIS YEAR.

TRAFFIC CALMING.

WE FORMALIZED THIS PROGRAM A YEAR OR TWO AGO.

I KNOW COUNCILMAN SALDAÑA, WE TALKED A LOT ABOUT LET'S GET THIS MORE FORMALIZED, SO WE DO HAVE THE TRAFFIC CALMING HANDBOOK THAT IS DEVELOPED, IT HAS THE TOOLS IN THERE.

TAKE CARE OF CUT THROUGH TRAFFIC ISSUES, THOSE SPEEDING ISSUES THROUGH THE NEIGHBORHOOD.

SO THAT INCLUDES THE RADAR SPEED TRAILERS THAT SAPD USES TO HELP FLASH THOSE SPEEDS.

WE'VE GOT A NUMBER OF PROJECTS THAT HAVE BEEN COMPLETED AND OTHERS UNDERWAY AS WELL.

I KNOW JEFF ARNDT, PRESIDENT AND CEO OF VIA IS HERE, BRIAN BUCHANNAN, SENIOR VP, THANK YOU FOR BEING HERE.

AS I MENTIONED.

F.Y. 19, GOING TO THE 10 MILLION LEVEL, THAT WOULD BE TRANSFERRED TO VIA.

THEY'RE ON TRACK WITH THEIR PHASES.

YOU CAN SEE IN JANUARY 2018, PHASE I INCLUDED NINE ROUTES LISTED THERE, AND TWO CORRIDORS, SO THE ROUTES WERE 30 MINUTE SERVICE, THE CORRIDORS 12 MINUTE SERVICE, AND THEN PHASE II NOW THREE CORRIDORS, YEAH, THREE CORRIDORS, AND THEN THE 10 MILLION IN PHASE III COMING UP.

WE'LL INTRODUCE MORE CORRIDORS,

[00:30:01]

FOUR CORRIDORS AT THAT 12 MINUTE SERVICE, SO THEY'RE ON TRACK WITH WHAT THEY SAID THEY'RE GOING TO DO, AND.

THE NEXT FUND IS OUR RIGHT OF WAY FUND, SO THIS IS -- YOU CAN SEE THE REVENUE AGAIN AROUND THE PERIMETER OF THE PIE CHART, BASICALLY IT'S INSPECTION FEES, COMING IN, SO ANYBODY THAT'S DOING WORK IN THE RIGHT OF WAY NEEDS TO GET A PERMIT, AND THAT GOES FOR CITY PROJECTS.

THAT GOES FOR DEVELOPERS, UTILITY COMPANIES.

EVERYBODY IS GETTING A PERMIT FROM OUR RIGHT OF WAY OFFICE.

AND THEN BASICALLY IT'S THE INSPECTIONS PROCESS, MAKING SURE THAT IT'S DONE RIGHT, THE TRAFFIC CONTROL IS RIGHT, THE TRENCHING THAT HAPPENS AND THE RESTORATION AFTER THE FACT IS DONE WELL.

OUR FIBER DEVELOPMENT WITH THE NUMBER OF DIFFERENT AGENCIES OUT THERE, YOU CAN SEE SOME NUMBERS BY AGENCY.

AT&T OF COURSE IS MAKING A BIG EFFORT CITYWIDE.

THEY'VE GOT -- THEY AVERAGE ABOUT 25 PERMITS MONTHLY, AND MOST OF THEIR WORK RIGHT NOW IS GOING ON IN DISTRICTS 2 AND 6, BUT SINCE THEY HAVE INFRASTRUCTURE ALL OVER THE CITY, THEY WILL SATURATE THE CITY WITH THAT -- WITH THAT FIBER.

SPECIFICALLY FOR NORTHSIDE AND EDGEWOOD ISDS, THEY'RE COMPLETE WITH THEIR BUILDOUTS FOR THE SCHOOLS.

GOOGLE HAS BEEN WORKING, THEY'VE BEEN DOING THE MICROTRENCHING WHEN IS THAT FOUR TO FIVE INCH DEEP TRENCH RIGHT OFF OF THE CURB SO IT MINIMIZES THE IMPACT, YOU REMEMBER THE ISSUES WE WERE HAVING THROUGH LANDSCAPING, SO FORTH, DRIVEWAYS, IT WAS REALLY BAD A YEAR OR TWO AGO, IT'S GETTING BETTER THROUGH THAT, THE MICROTRENCHING IS HELPING.

THEY'VE MAYOR AND COUNCIL TRENCHED 265 MILES SO FAR IN DISTRICTS 6 AND 7 IS WHERE THEY'RE WORKING.

AND UNITE PRIVATE NETWORKS IS ANOTHER INSTALLER, ABOUT 80 MILES OF FIBER, AND THEY'RE SPECIFICALLY FOCUSED ON 98 SAISD PROPERTIES TO GET FIBER TO THOSE SCHOOLS AND OTHER FACILITIES.

VERIZON IS GOING WITH A CITYWIDE EFFORT ON FIBER AS WELL, AND THEY STARTED IN JANUARY.

THEY EXPECT TO LAST ABOUT THREE YEARS, AND THEN ZAYO IS THE OTHER ONE, ABOUT 290 MILES, AND THEY WILL HAVE ANOTHER 50 MILES OR SO.

SO A LOT OF ACTIVITY.

WE REIGNED -- REINED THEM ALL IN, NOT TO SAY THERE'S NOT GOING TO BE ISSUES, THEY'RE PROPERLY ASSIGNED, WHO IS THE COMPANY, WHO ARE YOU WORKING FOR, AND THEN WE'VE GOT THAT FORMAL COMMUNICATION PROCESS AS WELL SO WE -- IT IS MUCH BETTER TODAY, BUT WE CONTINUE TO HAVE ISSUES.

WE DO HAVE SOME OF THOSE LATERAL LINES GET HIT PERIODICALLY AND SO FORTH.

SO WE HAVE A TEAM THAT IS WORKING VERY CLOSELY ON THAT.

ALL RIGHT. THE STORM WATER UTILITY FEE, STORM WATER OPERATING FUND, 54.4 MILLION.

AGAIN, YOU CAN SEE THE REVENUES AROUND THE PERIMETER, AND THEN ALL THE DIFFERENT FUNCTIONS, THE EXPENSES THAT WE PROVIDE OUT THERE, SO FROM FLOOD MANAGEMENT, STREET SWEEPING, MOWING, CHANNEL RESTORATION, NATURAL CREEKWAY, TUNNEL MAINTENANCE, PLAY AS CRITICAL ROLE OBVIOUSLY FOR THE PUBLIC HEALTH AND SAFETY OF THE COMMUNITY.

WE'VE HAD THE CITY COUNCIL APPROVED SEVERAL YEARS AGO A FIVE YEAR RATE INCREASE, AND THAT WAS AFTER MUCH INVOLVEMENT OF GOING THROUGH IMPERVIOUS COVER METHODOLOGY.

A LOT OF BUSINESS DEVELOPMENT AND OUR DEVELOPMENT TASK FORCE AND SO FORTH THAT WE WORK WITH TO GET TO THAT POINT, AND SO THE LAST TWO YEARS, THIS YEAR F.Y.

19 F.Y. 20 IS A 2% PROPOSED INCREASE BASED ON THAT FIVE YEAR PLAN, AND THAT IS FOR JUST BASICALLY INFLATIONARY PURPOSES AT THIS POINT, FOR THE LAST TWO YEARS, SINCE THE COST OF PROJECTS, THE COST OF SERVICE IS GOING UP A LITTLE BIT EACH YEAR, THAT'S WITH THAT FOR.

WE HAVE A COUPLE OF BILLION WORTH OF DRAINAGE NEEDS THROUGHOUT THE CITY, SO EVERY LITTLE BIT HELPS, AND THIS MILLION WILL HELP TO THAT END.

ONE OF THE THINGS THAT WE ARE RECOMMENDING TAKING A MILLION DOLLARS FROM THAT FUND AND DOING WHAT WE CALL PILOTING SPRY LINING WITHIN THE CORRUGATED METAL PIPES.

TEN YEARS AGO WE STOPPED ALLOWING CORRUGATED METAL PIPE TO BE UNDER THE ROADWAY, IT'S NOT STRUCTURALLY SOUND ENOUGH OVER TIME TO DO THAT.

HISTORICALLY IT WITH US ALLOWED.

THE PIPE ON THE TOP, THE BOTTOM, IT LOOKS LIKE NORMAL STORM WATER FLOW, BUT IT'S ACTUALLY ROTTED OUT, SO NEFI, THE PROFESSOR HAS A COUPLE OF THINGS TO SHOW REAL

[00:35:02]

QUICK.

HOLD UP THE DETERIORATED ONES.

THIS IS WHAT HAPPENS AFTER 30 YEARS, YOU KNOW, IT'S NOT GOING TO DO TOO WELL OUT THERE, I WON'T PASS IT AROUND BECAUSE IT'S PRETTY SHARP.

WE'RE ABLE TO PILOT SPRAY LINING THESE PIPES, WE DON'T HAVE TO TRENCH THE STREETS, WE GO IN, SPRAY LINE IT, IT TURNS INTO A CONCRETE PIPE INSIDE.

CONCRETE IS WHAT IS ALLOWED TODAY.

THIS IS A GREAT WAY TO DO IT.

WE KNOW IT WORKS BUT WE'RE GOING TO TEST A FEW DIFFERENT APPLICATIONS TO MAKE SURE -- THANKS, NEFI.

THAT'S GOING TO BE A GOOD INNOVATIVE APPROACH, THE BIGGEST THING IS NOT HAVING TO TRENCH THE STREET TO DO IT.

OKAY.

SO THE STORM WATER REGIONAL FUND KNOWN AS FILO, AGAIN, YOU SEE THE REVENUES AND EXPENSES, SO BASICALLY AS DEVELOPERS COME IN, THEY PARTICIPATE IN THIS FUND, AND THEY PARTICIPATE IN A COUPLE OF WAYS, SO THEY CAN PAY THE FILO, BUT WHAT THEY HAVE TO PROVE FIRST IS THAT THEY HAVE NO DOWNSTREAM IMPACT FROM THEIR DEVELOPMENT, SO THE HYDROLOGY STUDIES HAVE TO SHOW THAT THERE'S NO DOWNSTREAM IMPACT.

IF THERE IS DOWNSTREAM IMPACT, THEN THEY HAVE TO DO DETENTION ON THEIR SITE, WHATEVER IT TAKES TO MITIGATE THAT IMPACT.

IF THERE'S NO DOWNSTREAM IMPACT, THEN THEY CAN APPLY FOR FILO HERE, THEY CAN EITHER DO IMPROVEMENTS OFF OF THEIR SITE THAT HELP US FROM A STORM DRAINAGE WAY, METHOD, OR THEY PAY INTO THE FUND, AND SO 7.8 MILLION IS PROJECTED FOR FY 19.

AND WE HAVE ONE POSITION THAT'S BEING RECOMMENDED IN THE BUDGET, AND THAT'S TO KEEP THAT SERVICE LEVEL AGREEMENT.

WE HAVE NOT BEEN ABLE TO ACHIEVE THE TURN AROUND TIME NOW THAT THE ECONOMY IS BACK, WE'VE GOT MORE DEVELOPMENT ACTIVITY GOING ON, WE HAVE NOT BEEN ABLE TO KEEP UP WITH THE DEVELOPERS THROUGH THE PROCESS.

SO ADDING ONE MORE POSITION SO WE CAN KEEP UP WITH THE TEN-DAY TURN AROUND ON THE MINOR PLATTE REVIEW THAT WE DO, ONE POSITION.

AND THEN IN THE SOUTHERN PART OF SAN ANTONIO, THERE'S A BIG WATERSHED RELATED TO CONCEPTION CREEK, AND IT COVERS IN DISTRICT 3, DISTRICT 5, AND BEYOND.

THERE'S ABOUT 450 HOMES IN THE FLOODPLAIN IN THAT AREA.

SO WE PLAN TO WORK ON THAT PROJECT AND GET THE PLANNING DONE, GET THE FIRST PHASE GOING AND DEVELOP THAT PROGRAM.

ALL RIGHT. LET'S MOVE IN THE CAPITAL PROGRAM QUICKLY HERE.

SO FOR F.Y. 19, 690 MILLION IN ABOUT 450 PROJECTS.

IN ALL OF THESE DIFFERENT FUNCTIONS, YOU CAN SEE HERE FROM IT TO AVIATION, DRAINAGE, PARKS, NEIGHBORHOODS, AND FACILITIES, AND STREETS AS WELL.

FOR THE 2017 BOND PROGRAM, AS YOU KNOW, EVERY PROJECT, ALTHOUGH 180 PROJECTS, THEY ALL HAVE A SCHEDULE.

THEY HAVE A BASELINE SCHEDULE THAT WE'RE AGAINST.

WE HAVE THE CONSTRUCTION -- WELL, THE DESIGN SHOWN HERE IN ORANGE AND THEN MOVING INTO CONSTRUCTION.

OF COURSE A LOT OF PROJECTS ARE ALREADY IN CONSTRUCTION.

THIS KIND OF SHOWS THAT, THAT WE HAVE 17 PROJECTS IN CONSTRUCTION RIGHT NOW.

YOU KNOW, THE FIRST ONE THAT'S GOING TO BE COMPLETE, WE EXPECT TO BE THE GREEN ROOM DOWN AT THE MISSION MARQUEE IN COUNCILWOMAN VIAGRAN'S DISTRICT, BUT OTHERS ARE FOLLOWING CLOSE WITH THAT AS WELL, SO WE'LL BE COMPLETING SOME PROJECTS SOON, AND THE REST OF THEM WILL BE ROLLING THROUGH THE DESIGN AND CONSTRUCTION PROCESS.

I WANT TO HIGHLIGHT A COUPLE OF EFFORTS HERE, SMALL BUSINESS PROGRAM.

SO FIVE YEARS AGO WE CREATED A DIVERSITY ACTION PLAN, BECAUSE AT THAT TIME, WE HAD ZERO PARTICIPATION FROM AFRICAN-AMERICAN-OWNED CONTRACTOR.

ZERO.

SO WE SAID THIS CAN'T BE RIGHT.

LET'S GO FIND OUT, YOU KNOW, WHO ARE THE COMPANIES AND WHY AREN'T THEY WORKING ON CITY WORK.

SO WE STARTED THAT PROCESS FIVE YEARS AGO, WORKING DIRECTLY WITHIN THE NAACP, AND MR. OLIVER HILL, THE PRESIDENT OF THE LOCAL CHAPTER, THANK YOU FOR YOUR PARTNERSHIP.

YOU'VE GOT HORACE BROWN WITH YOU, ELLIOTT LEE IS OVER HERE, FRANK DUNN, OUR STAFF, OUR DIVERSITY COORDINATOR, COURTNEY MCCLURE, COURTNEY, THANK YOU FOR YOUR LEADERSHIP, MONTHLY, WE GOT THE BREAKFAST CLUB.

AND IN THAT TIME, YOU CAN SEE THE NUMBERS, 30 MILLION, TWO AFRICAN-AMERICAN OWNED CONTRACTOR, OVER 20 COMPANIES,

[00:40:01]

30 MILLION IN THAT FIVE YEAR PERIOD, IT'S ALMOST CLICKING AT A MILLION A MONTH NOW SO THANK YOU TO SHERYL AND THE CITY COUNCIL FOR THE LEADERSHIP, BECAUSE IN THE PAST YOU'VE FUNDED SOME DOLLARS TOO FOR BUSINESS ASSISTANCE WITH THEM, TO HELP -- THEY MAY BE VERY GOOD AT BUILDING SOMETHING, BUT MAYBE THEIR BUSINESS PLAN IS NOT THERE, WHATEVER, OR THEY MAY NOT KNOW HOW TO BID A CITY PROJECT, SO IT'S BEEN GOOD TRAINING.

WE HAVE SOME GREAT SUCCESS STORIES NOW, SO WE'RE GOING TO CONTINUE TO BUILD ON THAT.

THE BOTTOM NUMBERS HAVE TO DO WITH OUR BOND MASS SELECTION PROCESS THAT HAS REALLY RESULTED IN 65% SMALL BUSINESS PARTICIPATION FOR THE BOND PROGRAM, SO THOSE ARE HUGE NUMBERS.

SO WE'RE VERY HAPPY ABOUT THAT.

WE HAVE FOR THE BOND PROGRAM, WE ARE SEEKING EIGHT POSITIONS, RECOMMENDED EIGHT POSITIONS IN THE BUDGET, SO JUST LIKE THE PRIVATE SECTOR, WE'VE CUT POSITIONS IN THE PAST, WHEN THE BOND PROGRAM IS ON THE DOWNTURN, AND WE'VE GONE BACK UP WHEN IT'S ON THE UPTURN LIKE IT IS RIGHT NOW, SO RECOMMENDING THAT.

YOU KNOW, WE HAVE A 40% LARGER BOND PROGRAM, AS YOU KNOW, THAN THE PAST ONE.

WE'LL END UP WITH 12 FEWER POSITIONS TO HANDLE THE BIGGER BOND PROGRAM, SO WE ARE GETTING MORE EFFICIENT, EVEN WITH THE EIGHT ADDITIONAL, WE'LL STILL BE 12 LESS THAN BEFORE, WHICH IS GOOD.

WE'RE GETTING MORE EFFICIENT AS WE GO.

ALMOST WRAPPED UP HERE.

SO WE HAVE ONE PROJECT IN THE '17 BOND THAT WHAT WE CALL HAS A FATAL FLAW.

THIS IS VERY RARE THAT THIS HAPPEN, BUT NICK THE DISTRICT 2 SPORTS FACILITY, THAT ALLOCATION OF 3.55 MILLION, WE ANTICIPATED A PARTNER IN THAT, THE PARTNER WAS GOING TO BRING DOLLARS AND THEY WERE ALSO GOING TO OPERATE AND MAINTAIN THE FACILITY.

THEY'RE NONRESPONSIVE.

THEIR EXPECTATION WAS THAT IT WAS GOING TO BE A MUCH BIGGER PROJECT, MAYBE 15 TO $20 MILLION PROJECT FROM THE CITY, SO I DON'T THINK THE NUMBERS WORKED FOR THEM IN THE END, BUT REGARDLESS, THIS PROJECT CAN'T HAPPEN AS PLANNED SO WE'VE BEEN THROUGH A PROCESS WITH THE PARKS DEPARTMENT, WORKING WITH SHERYL AND TEAM, AND THEN WITH COUNCILMAN SHAW ON WHAT'S THE BEST WAY TO REALLOCATE, SO THAT IS PART -- AND THEN ALSO DISCUSSION WITH BOND COUNSEL AND BEN GORZELL AND TEAM, BECAUSE YOU CAN'T DO THIS LIGHTLY.

OBVIOUSLY YOU'VE GOT TO STAY WITHIN THE PROPOSITION, AND SO THESE -- THESE FOUR PROJECTS SHOWN HERE, THESE ARE 2017 BOND PARKS PROPOSITION PROJECTS, SO -- AND THEY'RE IN ALL IN D2, SO IT WOULD TAKE THE DOLLARS FROM A D2 PARKS PROJECT IN THE POND AND DISTRIBUTE IT TO THESE OTHER PARK PROJECTS IN THE SAME PROPOSITION AND THERE'S SOME ADDITIONAL SCOPE, NEEDS THAT ARE REALLY GOING TO BENEFIT THE PARK, SO THAT'S THE PLAN AND WOULD BE AS PART OF THE BUDGET PROCESS.

ONE FINAL WORKFORCE DEVELOPMENT THING HERE THAT I KNOW COUNCILMAN TREVINO, YOU'VE BEEN PART OF THE ACE MENTOR PROGRAM FOR HIGH SCHOOLERS, SO UTSA HAS A GREAT PREP PROGRAM FOR THE STEM STUDENTS, GOES RIGHT INTO THE ACE MENTOR PROGRAM, ARCHITECTURE, CONSTRUCTION, ENGINEERING.

YOU CAN SEE THE NUMBERS HERE FOR THIS PAST SCHOOL YEAR.

WE WERE IN 11 HIGH SCHOOLS, AND SO THE CITY HAS MENTORS THAT ARE IN THE PROFESSION.

I HAVE THEM SERVE AS THE CHAIR OF THE BOARD FOR THE LOCAL CHAPTER, AND THEN WE GET OTHERS INVOLVED.

ELEVEN HIGH SCHOOLS, 140 STUDENTS.

90 MENTORS HELPING THESE STUDENTS UNDERSTAND.

AND WHAT ACE HAS DONE NATIONALLY IS IT HAS DOUBLED THE FEMALE PARTICIPATION GOING INTO THOSE DEGREE PATHS.

DOUBLED THE PERCENTAGES.

IT'S ALSO DOUBLED THE PERCENTAGES OF MINORITY STUDENTS GOING INTO THOSE DEGREE PATHS OF ARCHITECTURE AND ENGINEERING, SO -- AND THEN SCHOLARSHIPS AS WELL.

SO WITH THAT, WE HAVE A ONE-MINUTE VIDEO ON TCI THAT WE SHOW OUR NEW EMPLOYEES DURING ORIENTATION AND THEN I KNOW BEN IS GOING TO DO THE -- THE DEBT PLAN AFTER THAT.

[00:45:33]

>> SCULLEY: APPLAUSE.

NICE JOB.

THANK YOU FOR THAT.

MIKE AND HIS TEAM DO A GREAT JOB AND HE TALKED ABOUT SOME ADDED POSITIONS, AND WE EXPAND AND CONTRACT DEPENDING UPON THE WORKLOAD AND HOW MUCH MONEY AND INTENTION IS IDENTIFIED AND DIRECTED BY THE COUNCIL IN TERMS OF THIS BUDGET.

ONE OF THE POSITIONS IN THE STREETS AREA IS GOING TO BE FOCUSING ON SOME OF OUR PEDESTRIAN MOBILITY ISSUES FOR THE COMMUNITY SPECIFICALLY SIDEWALKS, AND I KNOW COUNCILMAN TREVINO, THIS HAS BEEN A PRIORITY OF YOURS.

WE'VE TALKED ABOUT SOME ALTERNATIVE DELIVERY METHODS IN TERMS OF OUR CONSTRUCTION, WE'RE PILOTING THE CONSTRUCTION IN A COUPLE OF AREAS RIGHT NOW, BUT THIS POSITION, WHICH WILL BE IN OUR TRANSPORTATION PLANNING AREA, WILL ADDRESS SOME OF OUR SIDEWALK ISSUES, BUT ALSO OUR SCOOTERS.

YOU KNOW THAT WE'LL BE COMING TO THE TRANSPORTATION COMMITTEE WITH SOME RECOMMENDATIONS ON THE SCOOTERS.

WE HAD AN ACCIDENT WHILE WE'RE HERE IN THE COUNCIL MEETING THIS AFTERNOON, A YOUNG WOMAN ON A SCOOTER DOWNTOWN AT COMMERCE AND NAVARRO, THAT FELL OFF OF HER SCOOTER, AND, YOU KNOW, SOME OF THESE SCOOTERS MOVE PRETTY FAST IN THE DOWNTOWN AREA, SO WE'LL BE MAKING SOME RECOMMENDATIONS.

WE WANT TO INCORPORATE THEM, BUT THIS POSITION WILL HELP US COORDINATE THOSE ACTIVITIES WITH REGARD TO SIDEWALKS, WITH SCOOTERS, AND EVEN SOME OF OUR BIKE LANE ACTIVITY.

WE'LL BE WORKING ON THAT, AND I WANTED TO POINT THAT OUT, THAT ONE OF THOSE POSITIONS WILL BE

[B. Debt Plan]

COORDINATING THESE MOBILITY ACTIVITIES.

NEXT IS BEN GORZELL, BEN, PLEASE COME FORWARD, BECAUSE HE'S GOING TO TALK ABOUT HOW WE FINANCE OUR CAPITAL PROJECTS AND THEN WE CAN OPEN IT UP TO QUESTIONS FROM COUNCILMEMBERS.

BEN?

>> GOOD AFTERNOON, MAYOR AND COUNCIL MEMBERS, BEFORE I JUMP INTO THE PRESENTATION, LET ME INTRODUCE A FEW FOLKS AS WELL FROM THE FINANCE TEAM.

SO WE'VE GOT KATHY AREOLA, OUR DEBT ADMINISTRATOR OVER OUR DEBT INVESTMENT PROGRAM.

KATHY, IF YOU WOULD STAND UP REAL QUICK.

ALEX TIJERINA, WHO IS ONE OF OUR MANAGERS IN THE DEBT AND INVESTMENT AREA.

TROY ELLIOTT, OUR DEPUTY CFO, AND THEN I'VE GOT TEN I CAN'T ON THE END, SHE IS OUR TAX ASSESSOR, SHE GETS THE FUN OF DOING THE TRUTH IN TAXATION EVERY YEAR.

AND THEN RICHARD RAMIREZ WITH HILLTOP SECURITIES.

>> AUDIENCE: (INDISCERNIBLE).

>>

>> LET ME SAY FROM THAT PERSPECTIVE, MIKE'S TEAM CAN'T GET ON THE COURT WITHOUT MY TEAM.

I DON'T THINK THERE'S A COURT WITHOUT MY TEAM.

SO JUST SAYING.

SO WITH THAT, LET ME JUMP IN TO THE PRESENTATION HERE.

AND I'M GOING TO START JUST WITH SOME QUICK BACKGROUND.

SOME OF THE SLIDES I'LL GO THROUGH QUICKLY.

WE TALKED ABOUT SOME OF THIS BEFORE.

BUT, YOU KNOW, AGAIN, THERE'S FOUR TYPES OF DEBT THAT THE CITY CAN ISSUE.

WE ISSUE GENERAL OBLIGATION BONDS, TYPICALLY THE ONE THAT'S TALKED ABOUT THE MOST.

THIS IS THE BOND PROGRAM THAT WE'VE BEEN VOTING EVERY FIVE YEARS FOR THE PROPOSITIONS AND ASK FOR APPROVAL TO ISSUE BONDS FOR THOSE PROJECTS.

THAT'S PROPERTY TAX BACKED AND PAID FOR BY PROPERTY TAXES.

CERTIFICATE OF OBLIGATION WE CAN ISSUE AS WELL.

THEY'RE LIKE A GENERALBOND.

THEY'RE NOT VOTED.

THERE'S A STATUTORY PROJECT WE FOLLOW TO GIVE MONEY TO THE COMMUNITY IN THE PROJECTS WE'RE GOING TO FUND AND WE USE PROPERTY TAXES TO PAY FOR THE CERTIFICATE OF OBLIGATION.

AND IN SOME CASES WE'LL USE OTHER REVENUES TO DO THAT.

TAX NOTES ARE SIMILAR.

THEY'RE A SHORT TERM INSTRUMENT.

THE BONDS ARE TIP TYPICALLY IN THE 15 TO 20 YEARS.

TAX NOTES GO UP TO SEVEN YEARS.

WE TYPICALLY ISSUE THEM AT A THREE-YEAR PAYOFF.

AND REVENUE BONDS ARE THE ONES THAT ARE SUPPORTED WITH NONPROPERTY TAX REVENUES.

A GOOD EXAMPLE OF THAT WOULD BE THE AIRPORTS.

AIRPORT BONDS, THE ONLY THING WE PLEDGE TO THE BONDHOLDER IS AIRPORT REVENUES.

BOND RATINGS, THIS IS THE SCALE THAT THE BOND RATING AGENCIES USE, THE THREE MAJOR ONES HERE,

[00:50:02]

FITZ, MOODY EA AND S&P.

THE TOP RATING IS TRIPLE A.

THEY HAVE SIMILAR CRITERIA OR LEVELS AFTER THAT.

AND EVERYTHING I HAVE ON THIS SLIDE IS CONSIDERED INVESTMENT GRADE TRIPLE B OR ABOVE.

TRIPLE A IS THE HIGHEST YOU CAN GET.

THE BEST CREDIT YOU CAN HAVE.

YOU CAN BORROW AT THE LOWEST COSTS OF FUNDS, PAYING THE LOWEST INTEREST RATES.

THEN YOU HAVE HIGH GRADE, DOUBLE A CATEGORY.

FITCH AND S&P ARE SIMILAR.

DOUBLE A PLUS, DOUBLE A, DOUBLE A MINUS, MOODY'S DIFFERENT, DOUBLE A 1, 2, AND 3.

THEN YOU CAN SEE THE SINGLE A AND B CATEGORIES.

HOW MUCH DEBT THE CITY HAS, $3 BILLION INCLUDING OUR PROPERTY TAX SUPPORTED DEBT AND ALL OF OUR REVENUE DEBT.

THE -- ONE OF THE THINGS THAT WE'RE LOOKING FOR ARE OPPORTUNITIES TO REFINANCE.

SO LIKE SOMEONE WANTS TO GO IN AND REFINANCE THEIR MORTGAGE TO GET A LOWER INTEREST AND LOWER YOUR PAYMENT, WE'RE DOING THE SAME THING.

WE CONTINUE TO FUND OUR CAPITAL PROGRAM, WE LOOK FOR OPPORTUNITIES TO SAY WHERE CAN WE LOWER THE COSTS FOR THE BONDS THAT WE CURRENTLY HAVE OUTSTANDING.

SINCE MAY OF '07, WE'VE BEEN ABLE TO DO THAT 11 TIMES.

THE GROSS SAVINGS ARE JUST UNDER $25 MILLION AND JUST UNDER $94 MILLION IN PRESENT VALUE SAVINGS.

IF YOU LOOK AT OUR CURRENT OUTSTANDING DEBT, $1.9 BILLION IS IN THE GENERAL OBLIGATION MEANING WE HAVE PROPERTY TAXES IN PAYMENT IN DEBT AND WE HAVE REVENUE BONDS AND OTHER TYPES OF BONDS LISTED THERE.

THE NEXT THREE ARE AIRPORT, STORM WATER, AND THEN WE'VE GOT LEASE REV KNEE BONDS.

THOSE THERE THE BONDS WE USED TO SUPPORT THE BUILDING OF THE CONVENTION CENTER EXPANSION PROJECT AND REFINANCE THE HOT REMEDY BONDS THAT WERE OUTSTANDING.

$3 BILLION OUTSTANDING.

SOME OF THE EFFECTIVE INTEREST RATES LISTED THERE, IT'S GOT AN EFFECTIVE INTEREST RATE OF 2.87%.

THAT'S A GOOD RATE WHEN YOU THINK ABOUT HAVING A LONG-TERM DEBT PORTFOLIO WHEN YOU DECIDE TO -- WHEN YOU'RE ON THE SIDE OF PAYING THE INTEREST COSTS, A VERY GOOD INTEREST RATE FOR US.

THE AVERAGE LIFE, WHEN YOU TALK ABOUT AVERAGE LIFE, I TRY TO DESCRIBE IT IF WE ISSUE 20-YEAR BONDS, THE AVERAGE LIFE SHOULD BE TEN YEARS IF I'M PAYING AS MUCH PRINCIPAL IN THE LAST TEN AS I DID IN THE FIRST TEN.

WE'RE AT 8.73 YEARS.

WE'RE AMORTIZING PRINCIPAL FASTER.

THAT'S BEEN A CORNERSTONE OF OUR FINANCIAL MANAGEMENT AND OUR BOND MANAGEMENT PROGRAM BECAUSE AS THE ECONOMY DOES BETTER, WE CAN ACCELERATE AND PAY A LITTLE MORE PRINCIPAL.

AS IT SLOWS, THEN THIS IS ONE OF THE FLEXIBILITY OPTIONS WE HAVE TO MAKE IT GO OUT A LITTLE BUILT WHEN WE GET TO THE RECESSION.

THAT'S ONE OF THE KEY FUNDAMENTAL PARTS AND THE SEVERAL OTHERS.

I WON'T GO THROUGH THE REST THERE LISTED FOR YOUR INFORMATION.

IN TERMS OF THE BOND RATINGS THE CITY HAS IN PLACE TODAY, AS YOU ALL KNOW, WE JUST DID A GENERAL OBLIGATION CERTIFICATE AND TAX NOTE ISSUANCE OF THIS MONTH AND GONE TO THE RATING AGENCIES IN JULY TO PRESENT OUR POSITION TO THEM.

THEY REAFFIRMED OUR TRIPLE A BOND RATING FROM ALL THREE.

SO WE MAINTAINED THAT FOR SEVERAL YEARS.

AIRPORT SINGLE A.

WE'RE NOT A HUB.

AIRPORTS BY THEIR NATURE, YOU'RE PLEDGING REVENUES FOR THE REPAYMENT OF THE DEBT.

THAT'S GOING TO BE A RISKIER INVESTMENT, WHEN YOU HAVE RECESSIONS, YOU SEE WHAT HAPPENS WITH PEOPLE FLYING AND HOW VOLATILE THAT CAN BE.

THAT IMPACTS THAT, THE BOND RATING NOT LEGALLY TIED TO THE RATINGS, IT HAS HELPED US MAINTAIN SOME OF THESE RATINGS.

FOR EXAMPLE, I KNOW WE'VE GONE THROUGH AND TALKED TO THE AIRPORT ANALYST, WE HAVE A LOT GOING ON AT THE AIRPORT.

THERE'S CERTAINLY PRESSURE ON THESE AIRPORT RATINGS AND SOME OF THE FEEDBACK WE'VE GOTTEN IS NOT FOR YOUR TRIPLE A YIELD BOND RATING, WE WOULD LIKELY IMPACT THIS RATING, MEANING THEY WOULD HAVE LOWERED IT.

THEY'RE LOOKING AT IT FROM AN ORGANIZATIONAL STANDPOINT, THE AIRPORT ALMOST BEING LIKE A COMPANY OF OR SUBSIDIARY OF THE LARGER PARENT CORPORATION BEING THE CITY.

SO THAT HELPS, FROM A RATING PERSP PERSPECTIVE.

THE OTHER IS THE CONVENTION CENTER EXPANSION PROJECT.

DOUBLE A ONE, TWO, FINANCING, IT WAS A DOUBLE NOTCH ALL OF OUR BOND RATING.

THAT HELPED US TO ACHIEVE THE LEVEL OF FUNDING.

THAT WAS A CHALLENGING ONE TO GET DONE TO COME UP WITH ENOUGH OF A FINANCING STRUCTURE THAT WE CAN MEET THE KIND OF PROJECT

[00:55:01]

THAT WE WERE LOOKING TO DO.

BUT BY DOING IT THROUGH THIS PUBLIC FACILITIES CORPORATION AND TAKING ADVANTAGE OF THE TRIPLE A BOND RATING, WE WERE ABLE TO LEVERAGE OUR PROJECT IN A VERY COST EFFECTIVE WAY.

$1.5 BILLION, AVERAGE LIKE 8.7 YEARS.

TALKING A LITTLE BIT ABOUT OUR LEGAL LIMITS.

MOST STATE LAW AND CITY CHARTER HAVE LEGAL LIMITS IN PLACE IN TERMS OF HOW MUCH PROPERTY TAX DEBT WE CAN HAVE OUTSTANDING.

UNDER STATE LAW AND THE CHARTER, WE CAN'T EXCEED 10% OF OUR TOTAL EVALUATION, WHICH, FOR THE CURRENT YEAR, WOULD PUT US AT $12.4 BILLION.

AND ON THE TAX RATE SIDE, THERE'S A STATUTORY PROVISION AND AN ATTORNEY GENERAL POLICY THAT'S IN PLACE THAT SAYS YOU CAN'T LEVY A TAX RATE THAT EXCEEDS $1.50 PER $100 OF VALUATION.

WE'RE AT 21 CENTS AND WE'VE BEEN THERE SINCE 2004.

WHAT DOES THAT LOOK LIKE IF YOU LOOK AT IT JUST BEFORE? WE'VE DONE THREE OF THE LARGEST BOND PROGRAMS IN THE CITY'S HISTORY.

IN 2007, '12, AND '17.

SO IF YOU LOOK AT THIS, OUR ACTUAL DEBT OUTSTANDING COMPARED TO THE DEBT CEILING 2006 RIGHT PRIOR TO US DOING THE BIG BOND PROGRAMS AND LOOKING AT IT TODAY, YOU CAN SEE AS A PERCENTAGE, WE'RE DOWN A LITTLE BIT ON THE CEILING.

SO WE'RE AT ABOUT 15.4% IN 2006.

WE HAD ABOUT $1 BILLION OF DEBT OUTSTANDING ON THE PROPERTY TAX SIDE AGAINST THAT $6.5 BILLION DEBT CEILING, WE'RE AT 15.4%.

FAST FORWARD TO FY-2018, WE'VE GOT $1.7 BILLION OF NET PROPERTY TAX DEBT OUTSTANDING COMPARED TO THE $12.4 BILLION DEBT CEILING, WE'RE AT 13.7%.

SO, AGAIN, WE'VE BEEN ABLE TO ACCOMPLISH VERY LARGE BOND PROGRAMS FOR THE COMMUNITY, DELIVERING MUCH-NEEDED PROJECTS, BUT DOING IT AT A VERY RESPONSIBLE WAY.

THIS SLIDE TAKES DATA FROM THE TEXAS BOND REVIEW BOARD.

AS OF AUGUST 31, THEY UPDATE THIS PERIODICALLY, THIS LOOKS AT DEBT PER CAPITA.

THESE ARE THE LARGEST CITIES IN TEXAS.

YOU CAN SEE THAT WE RANK THIRD LOWEST IN THE STATE.

LOWER THAN AUSTIN, HOUSTON, AND DALLAS.

HERE, $146 ON A PER CAPITA BASIS.

A LITTLE BIT MORE IN THE DEBT MANAGEMENT PLAN.

AND THE UPDATE THAT WE JUST DID.

SO, THE FUNDAMENTAL PART OF THE TAX PLAN IS THE TAX RATE.

SO WE DO ADOPT THE BUDGET IN SEPTEMBER, YOU WILL ADOPT IT TO -- YOU'LL ADOPT THE TAX RATE TO TWO COMPONENTS.

YOU ADOPT THE MAY WANT NANCE AND OPERATIONS COMPONENT, WHICH WILL GO TO THE GENERAL FUND TO SUPPORT BASIC CITY SERVICES THERE.

AND THEN WE WILL ADOPT IT A DEBT SERVICE RATE THAT IS TO PAY PROPERTY TAX SUPPORTED DEBT.

WE'VE BEEN AT 21 CENT SINCE 2004.

WE MANAGE THAT AS PART OF OUR CAPACITY.

SO WE KNOW THAT WE DON'T MAKE ANY ASSUMPTION THAT THAT RATE IS GOING TO GO UP.

WE HOLD IT AT 21 CENTS AND WE SIZE CAPACITY INTO THAT.

THAT'S HOW WE BUILT THE BOND PROGRAMS WE HAVE IN PLACE TODAY.

IN TERMS OF TAX RELIEF IN THIS YEAR'S BUDGET, $52 MILLION IN THE PROPERTY TAX RELIEF IN THE FORM OF EXEMPTIONS AND TAX FREEZE PAYMENTS.

100,000 SENIORS AND DISABLED HOMESTEAD EXEMPTIONS AND FROZEN CITY TAX PAYMENTS AND 33,000 SENIOR HOMEOWNERS THAT PAY 0 PROPERTY TAXES.

I DO HAVE THE INFORMATION.

I WON'T GO THROUGH IT.

SOME OF WHAT WE TOUCHED ON IN THE GOALS AND OBJECTIVES WORK SESSION ABOUT THE NUMBER OF HOMESTEADS AND HOW MANY FALL INTO THIS OVER 65 CATEGORY.

IN TERMS OF THE BIG ASSUMPTION DEBT PLANS, THESE ARE KEY VARIABLES WE LOOK AT.

THE DEBT SERVICE TAX RATE, WE MAKE NO ASSUMPTION OF THE RATE GOING UP.

WE'RE SIZING EVERYTHING INTO THAT TAX RATE.

THE PLANNED AUTHORIZATIONS, WE PLAN THEM EVERY FIVE YEARS, IN 2006, WE PUT THIS PROGRAM TOGETHER.

WE SAID WE WANTED TO HAVE A BIG BUT A SUSTAINED CAPITAL INVESTMENT IN THE COMMUNITY, MEANING THAT WE WANTED TO BE ABLE TO DO BRING FORTH FOR YOUR CONSIDERATION A BOND PROGRAM EVERY FIVE YEARS SO WE COULD CONTINUE TO INVEST IN THE MUCH-NEEDED PROJECTS IN THE COMMUNITY.

SO WE DON'T TAKE THE APPROACH OF MAKING A BIG BOND PROGRAM AND NOT BEING ABLE TO DO ANYTHING FOR A LONG PERIOD OF TIME.

THIS IS ABOUT MANAGING CAPACITY AND MAKING SURE WE HAVE A SUSTAINED INVESTMENT IN OUR

[01:00:02]

INFRASTRUCTURE.

ONE THING I MENTIONED EARLIER IS THE AVERAGE LIFE.

WE LOOK AT THAT TO MAKE SURE IT'S ONE OF THE KEY PROVISIONS THAT GIVES US FLEXIBILITY AS THE ECONOMY EXPANDS OR CONTRACTS, WE'VE BEEN ABLE TO MAXIMIZE ON THE CAPACITY THAT WE'VE GOT.

SO WHEN WE GO THROUGH ALL OF THOSE ASSUMPTIONS AND LOOK AT THAT DEBT PLAN UPDATE, THIS IS THE CURRENT UPDATE TO THAT.

SO THE 2017 STACK WOULD BE THE CURRENT PROGRAM.

SO THE BARS ON THE BOTTOM.

THE DARKER BROWN, WOULD BE THE GENERAL OBLIGATION BONDS.

BOTH HAVE BEEN ISSUED IN THE PAST, BUT AS WELL AS OUR PROJECTION FOR THE FUTURE.

THE NEXT BAR UP IS OUR CERTIFICATE OF OBLIGATION.

THEN THE TAX NOTES.

THEN OUR SELF-SUPPORTING DEBT.

SELF-SUPPORTING DEBT IS US ISSUING AN EXAMPLE OF A CERTIFICATE OF OBLIGATION TO THE BONDHOLDER SAYS I'M GOING TO USE -- IT HAS A PROPERTY TAX PLEDGE BEHIND IT, SO THEY SEE THE TRIPLE A BOND RATING.

SO WE SAY SOLID WASTE NEEDS TO PAY FOR PART OF THE SERVICE CENTER.

THE SOLID WASTE FUND PAYS FOR PART OF THAT DEBT.

WHAT HAVE WE DONE? WE LORED THE COST OF GETTING THOSE BOND FUNDS.

WE ISSUED BONDS FOR THAT, IT WOULD ADD COST TO THE SOLID WASTE FUND.

SO THIS IS A COST-EFFECTIVE WAY FOR US TO PROVIDE CAPITAL TO SOME OF THE ENTERPRISE FUNDS.

LOOKING AT THE 2017 PROGRAM, WE HAVE THE GEOBOND PROGRAM THERE.

AND OUR C.O.S, TAX NOTES.

THAT'S HELPING TO SUPPORT -- IF CAN YOU LOOK AT WHAT WE ARE ISSUING THERE IS BASIC INFRASTRUCTURE, THE CTH TAX NOTES TOTAL TO $466.7 MILLION.

IF YOU JUST COMBINED WHAT WE'RE DOING IN STREETS OVER THAT PERIOD OF TIME ALONG WITH WHAT WE'RE SPENDING ON THE PUBLIC SAFETY RADIO SYSTEM, THAT IS 68% OF WHAT WE'RE ISSUING IN C OF O'S AND TAX NOTES.

IF YOU ADD IN WHAT WE'RE SPENDING ON I.T., I.T.

STRUCTURES.

THAT'S 12%.

THAT REPRESENTS ABOUT 80% OF WHAT WE'RE DOING IN CERTIFICATE OF OBLIGATION AND TAX NOTES.

THEN THE 2022 AND 2027 AUTHORIZATIONS ARE THERE, PLANNED AT 925.

THIS PROGRAM GETS UPDATED EVERY YEAR.

SO ASSUMING THAT THE CITY WANTS TO DO ANOTHER PROGRAM IN 2022, WE'RE BUILDING THE CAPACITY TO DO THAT.

BUT IT WILL BE SIZED TO WHATEVER THE ECONOMIC CONDITIONS ARE AT THAT POINT IN TIME.

SO, THIS IS JUST A PROJECTION.

IT WILL MOVE UP AND DOWN DEPENDING ON WHAT THE ECONOMY IS DOING.

THIS SLIDE LOOKS LIKE MAY OF 2007.

WE HAD 923.6 MILLION DOLLARS IN BONDS OUTSTANDING.

SINCE THAT TIME, WE ISSUED ABOUT $3 BILLION IN ISSUANCES.

THAT INCLUDES ABOUT $680 MILLION TO REFUND DEBT FOR SAVINGS, MEANING WE WERE -- LIKE YOUR MORTGAGE, REFINANCING TO GET A LOWER INTEREST RATE.

THEN WE PAID PRINCIPAL OF $1.3 BILLION.

SO, WHEN YOU LOOK AT THOSE LARGE -- I'M GOING TO GO BACK FOR JUST A SECOND -- WE WENT FROM SMALL GEO BOND PROGRAMS ALMOST EQUAL AMOUNT OF COS STARTING IN '07.

LARGE BOND PROGRAMS, DOING SOME C.O.S AGAIN FOR BASIC INFRASTRUCTURE.

THREE OF THE BIGGEST BOND PROGRAMS IN THE CITY'S HISTORY.

BUT LOOK WHERE OUR TOTAL DEBT ENDS UP.

WE ARE PAYING DOWN A LOT OF PRINCIPAL.

SO IT GOES BACK TO MAKING SURE THAT WE ARE FUNDAMENTALLY MANAGING OUR PROGRAM IN A RESPONSIBLE WAY.

THE NEXT SLIDE JUST TALKS ABOUT WHAT WE AT THIS TIME HAVE IN THE QUEUE FOR PROPOSED ISSUANCES FOR FY-2019.

THE -- THE FIRST ONE THERE IS THE HUD-108 LOAN.

WE MENTIONED THIS LAST YEAR WE HAVE A HUD 108 LOAN OUTSTANDING WHERE THE CITY INTRODUCED THAT LOAN IN 2006.

STARTED IN 2005, WE ENTERED IN A LOAN WHERE WE PLEDGED OUR LOAN, $56 MILLION TO FUND PROJECTS.

WE'VE BEEN PAYING USING CGBG RESIDENTS TO DO THAT.

WE RECOMMENDED TO CAN YOU ALL LAST YEAR IS WE REFINANCE THAT HUD LOAN, MOVE IT TO THE PROPERTY TAX DEBT PLAN, USE PROPERTY TAXES TO PAY FOR IT.

THAT FEES UP THE CDBG REVENUES TO BE USED FOR OTHER PURPOSES.

THE REASON WE WERE LOOKING AT THIS LAST YEAR WAS BECAUSE YOU'LL RECALL THERE WAS A LOT OF CONVERSATION FROM THE PRESIDENT'S BLUEPRINT BUDGET

[01:05:01]

WHERE HE ELIMINATED THE REVENUES AND OUR ENTITLEMENT FROM '06 WHEN WE'RE GETTING REVENUES FROM NOW HAS BEEN FALLING.

WE GOT A BUMP BUT IT'S LOWER THAN IT WAS IN '06.

WE WANTED TO ELIMINATE THE RISK OF OH CDBG FUNDS BEING ELIMINATED AND US BEING IN A POSITION TO MAKE A $4.5 MILLION DEBT PAYMENT.

MADE MORE SENSE FOR US TO USE CAPACITY HERE.

REFINANCE THIS.

GOING TO BE DONE FOR INTEREST COSTS SAVINGS.

IT'S ABOUT SEVEN YEARS LEFT ON THE NOTE.

THEN CGB REVENUES CONTINUE TO COME IN.

YOU HAVE THE FLEXIBILITY TO USE THOSE FOR PAY AS YOU GO PROJECTS.

SO WE THINK IT'S A SOLID WAY TO APPROACH PAYING THAT HUD-108 LOAN.

ON THE SIDE, PLANNED $249.5 MILLION.

THIS IS SUBJECT TO CHANGE.

MIKE SHOWED YOU HOW PROJECTS HAVE TO GO THROUGH A LIFE CYCLE AS THEY WORK ON DESIGN OR MOVING TO CONSTRUCTION.

WE WILL UPDATE THIS AGAIN NEXT TO WHERE HE'S AT IN THE PROGRAM.

COULD GO UP OR DOWN A LITTLE BIT BASED ON HOW PROJECTS ARE MOVING.

CERTIFICATE OF OBLIGATION, $33.7 MILLION, MOST OF THAT FOR STREETS AND PUBLIC SAFETY RADIO STATION.

AND $75 MILLION FOR THE LAND MANAGEMENT SYSTEM.

THAT WILL MOSTLY BE SELF-SUPPORTING.

THE FUND WILL BE PAYING FOR MOST OF THAT.

AND THEN WE HAVE TAX NOTES AT $37 MILLION.

AGAIN, I MENTIONED WE PAY THOSE OFF QUICKLY IN THREE YEARS OR LESS TO DO I.T. PROJECTS AND DEFERRED MAINTENANCE OF OUR CITY FACILITIES AND DO SOME OF OUR STREET MAINTENANCE.

THE PIECE HAS BEEN BIG FOR US BECAUSE IT ALLOWS US TO PAY THEM OFF SO QUICKLY.

IT HELPS WITH THE AVERAGE LIFE AND THE OVERALL PROGRAM.

SO IT'S BEEN A GREAT WAY TO KIND OF FILL IN THE GAPS BETWEEN BOND PROGRAMS, KEEPING OUR PRINCIPAL REPAYMENT STRONG AND KEEPING OUR BOND PROGRAM AT A GOOD POSITION.

AND AGAIN, THE GOAL IS MUCH LIKE WHEN WE WENT THROUGH THE LAST BIG RECESSION, WE WERE PROBABLY ONE OF THE FEW BIG CITIES THAT ACTUALLY DIDN'T HAVE TO DELAY PROJECTS.

WE WERE ABLE TO CONTINUE TO MOVE FORWARD WITH THE BOND PROGRAM WITHOUT AFFECTING THE TIMELINE AT ALL.

NEXT ONE WE MOVE OVER, JUST TALK ABOUT THE GEO BOND RATING A LITTLE BIT MORE.

SO, WE'RE THE ONLY CITY WITH THE POPULATION OF MORE THAN A MILLION TO HAVE A TRIPLE A BOND RATING FROM ANY ONE OF THE AGENCIES.

WE HAPPEN TO HAVE IT FROM ALL THREE.

WE'VE HELD THAT RATING NOW FOR NINE CONSECUTIVE YEARS.

AND AS I MENTIONED EARLIER, WE DID GET THAT RATING REAFFIRMED THIS PAST JULY WHERE WE WENT OUT AND OUR COS, GOS, AND TAX NOTES AND WE WERE ABLE TO GET THEM REAFFIRMLED.

THIS IS SOME OF THE STUFF THEY HAD IN THE RATING REPORTS, THE FULL REPORTS ARE AVAILABLE ON-LINE IF YOU WENT TO LOOK AT THOSE ON THE WEBSITE.

YOU CAN SEE THE FULL REPORT.

SO SOME OF THE THINGS THAT THEY HIGHLIGHT ARE GROWING VIBRANT ECONOMY, OUR SUPERIOR FINANCIAL RESILIENCE, OUR STRONG FINANCIAL POLICIES AND PRACTICES, AND THE STABLE EMPLOYMENT TRENDS.

WE HAVE STRONG REV FLEW FLEXIBILITY AND GROWTH PROSPECTS AS WELL AS OUR MINIMUM REVENUE VOLATILITY.

THEN THEY CITE OUR STRONG FINANCIAL MANAGEMENT AS WELL.

SO ONE OF THE THINGS THE RATING AGENCIES DO IS PUT OUT METHODOLOGIES, SCORE CARDS, THEY'RE GUIDES THAT TELL US HOW TO EVALUATE A CREDIT, HOW THEY'RE GOING TO EVALUATE RATINGS.

AND THEY LOOK AT EVERYTHING FROM ECONOMY, FINANCIAL POSITION, YOUR CASH POSITION, WHAT YOUR TAX BASE IS DOING, FUND BALANCES.

WE TALKED A LOT ABOUT THIS WITH YOU ALL IN TERMS OF THAT.

SOME OF IT IS WITHIN OUR CONTROL.

SO IT'S NOT WITHIN OUR CONTROL.

-- SOME OF IT IS NOT WITHIN OUR CONTROL.

BUT THEY GIVE YOU AN IDEA OF HOW THEY'RE GOING TO ASSESS AND ASSIGN A BOND RATING.

WE HAVE THOSE AS GUIDES AS WE PUT TOGETHER PROGRAMS TO KNOW AND GUIDE US IN TERMS OF WHERE DO WE THINK WE'RE GOING TO BE BASED ON THEIR METHODOLOGIES.

SO THAT'S AN IMPORTANT PIECE TO THIS.

I'LL TELL YOU THAT AS THE RATING AGENCIES DO THAT, WE ARE NOT -- WE'RE NOT A NATURAL TRIPLE A.

THERE ARE THINGS THAT WHEN YOU GO THROUGH THE SCORECARD THAT DON'T ALLOW US TO GET TO THAT LEVEL.

AS A MATTER OF FACT, I GIVE YOU AN EXAMPLE WITH MOODY'S, THEY'RE DOING THE SCORECARD, NOT US.

THIS IS SOMETHING THEY GIVE BACK TO US.

IF THEY GO THROUGH THE SCORECARD AND THEY SCORE ECONOMY, TAX BASE, FINANCIAL MANAGEMENT, ALL OF THOSE COMPONENTS, WE ACTUALLY COME OUT A DOUBLE A-3.

SO WHEN I GAVE YOU THAT BOND RATING CRITERIA, TRIPLE A WITH US THE TOP.

DOUBLE A 3 IS THREE NOTCHES

[01:10:01]

BELOW THAT.

SO THAT'S WHERE WE START WITH MOODY'S ON THE SCORECARD.

HOW DO WE GET FROM DOUBLE A 3 UP TO TRIPLE A? IT'S BY VIRTUE OF FINANCIAL MANAGEMENT, THE FINANCIAL POLICIES AND PRACTICES THAT WE HAVE IN PLACE, THE FISCAL DISCIPLINE THAT WE'VE BEEN ABLE TO DEMONSTRATE TO THEM.

FOR THE PAST SEVERAL YEARS.

THAT'S WHAT ALLOWS US TO MOVE FROM THAT DOUBLE A 3 CATEGORY ALL THE WAY UP TO TRIPLE A.

SO -- AND S&P HAS A SIMILAR METHODOLOGY.

FITCH IS MORE OF A GUIDE IN TERMS OF HOW THEY LOOK AT IT.

BUT NONE THELESS, THEY'RE VERY SIMILAR IN TERMS OF HOW THEY APPROACH HOW THEY'RE GOING TO EVALUATE THE RATING.

SO, AS WE TALK ABOUT -- I MENTIONED THE RATING REPORTS WERE THERE FOR YOU TO LOOK AT.

THEY DESCRIBE A LOTF OH THIS IN MORE DETAIL.

IF WE LOOK AT THE TRIPLE A BOND RATING AND WE SAY WHAT'S THE SINGLE BIGGEST CHALLENGE OR THREAT TO THAT BOND RATING TODAY, IT WOULD BE THE THREE PETITIONS THAT HAVE BEEN SUBMITTED BY THE FIRE UNION.

AND I WON'T GO THROUGH THEM IN ANY DETAIL.

Y'ALL KNOW WHAT THEY ARE.

THEY INCLUDE EXPANDING THE TOPICS OF REFERENDUM, LOWERING THE THRESHOLD OF SIGNATURES NEEDED TO PLACE SOMETHING ON A REFERENDUM.

AND THEN INCREASING THE TIME THAT YOU HAVE TO GET THE SIGNATURES, THE PETITION THAT WOULD LIMIT A FUTURE CITY MANAGER'S TERM OF SERVICE TO EIGHT YEARS AND CAPPING THE SALARY AT TEN TIMES THE LOWEST PAID CITY EMPLOYEE.

AND THEN ALSO ALLOWING THE FIRE UNION TO UNILATERALLY DECLARE IMPASSE IN COLLECTIVE BARGAINING AND FORCE BINDING ARBITRATION SO READY AGENCIES DON'T SPECULATE ON THINGS THAT HAVEN'T HAPPENED YET.

WE MAY TALK A LOT ABOUT THINGS WHILE WE'RE DISCUSSING OUR POSITION AND WHERE WE'RE AT.

MOST OF IT IS ABOUT OUR FINANCIAL POSITION, THE PROJECTS THAT WE'VE GOT GOING ON.

ECONOMIC DEVELOPMENT, ALL OF THOSE KINDS OF THINGS.

THEY WILL CLEARLY TELL YOU, WE DON'T SPECULATE ON THINGS THAT HAVEN'T HAPPENED YET.

THEY DON'T REALLY DO THAT.

I WAS QUITE HONESTLY FROM A PERSONAL PERSPECTIVE, I WAS QUITE SURPRISED TO SEE THE TWO OF THEM ACTUALLY NOTED THIS FIRE UNION OR THIS POTENTIAL ELECTION COMING UP IN NOVEMBER.

BECAUSE, AGAIN, THEY DON'T TYPICALLY SPECULATE.

S&P AND FITCH BOTH MADE NOTATIONS OF THAT WITHIN THEIR REPORTS.

I PULLED A COUPLE OF PIECES HERE.

YOU HAVE THEM QUOTED HERE.

THEY'RE STRONG STATEMENTS.

AISLE GO THROUGH THEM QUICK.

FITCH NOTED THESE HAVE THE POTENTIAL -- AND I QUOTE, HAVE THE POTENTIAL TO GREATLY LIMIT THE CITY'S EXPENDITURE FLEXIBILITY AND INTERFERE WITH MANAGEMENT'S ABILITY TO OPERATE THE CITY, END QUOTE.

OPEN QUOTE, SUCCESSFUL PASSAGE OF THESE TO MAKE ANY ORDINANCE SUBJECT TO REFERENDUM AND WOULD LEAD TO NEGATIVE RATING PRESSURE SHOULD THE CITY BE UNABLE TO PEFKT WAIT RESPONSES, END QUOTE.

S&P NOTED, QUOTE, IF VOTERS APPROVED THE PROPOSED CHANGES IN THE UPCOMING ELECTION, BELIEVE THE CHANGES TO THE REFERENDUM PROCESS IN PARTICULAR COULD HAVE A MATERIAL NEGATIVE IMPACT ON THE CITY'S FINANCES AS SUCH AS ISSUANCE COULD EFFECTIVELY LIMIT SAN ANTONIO'S ABILITY TO MANAGE ITS BUDGET.

SO, WHEN YOU LOOK AT THE FEEDBACK WE GOT AS FAR AS THE RATING, YOU KNOW, FROM MY PERSPECTIVE, YOU LOOK AT THE FIRE UNION PETITIONS, THOSE PETITIONS WILL INCREASE THE UNCERTAINTY, LIMIT FLEXIBILITY AND MANAGEMENT.

THEY'RE GOING TO ALTER OUR GOVERNANCE PROCESS.

AND I THINK WHEN YOU LOOK AT THAT AND YOU LOOK AT THE RATING METHODOLOGY THAT THE RATING AGENT CIGS HAVE PUT OUT.

IF YOU PUT OUT THE RATING AGENCY REPORTS, IF YOU LOOK AT THE FEEDBACK WE GOT FROM THESE TWO ON THE RECENT RATING VISIT AND A CREDIT RATING PROFILE, HOW WE'VE BUILT THE CREDIT PROFILE OVER TIME AND THE WAY IT'S PUT TOGETHER, I BELIEVE THAT -- MY PERSONAL OPINION -- PROFESSIONAL OPINION, IF THESE POSITIONS PASS, THE CITY WILL BE DOWNGRADED AND WE WILL LOSE THE TRIPLE A BOND RATING.

I DID GO OUT TO THEM AND ASKED THEM TO DO AN ANALYSIS AND GIVE ME THEIR FEEDBACK ON WHAT DO THEY BELIEVE THE IMPACT OF THE FIRE PETITION AMENDMENTS TO THE CHARTER WOULD BE.

AND THERE'S A REPORT.

IT SHOULD BE LOADED ON YOUR IPAD.

I HOPE ATTACHED TO THE ITEM.

IT'S A SHORT REPORT FROM THE CO-FINANCIAL ADVISORS THAT DETAILS KIND OF THEIR ANALYSIS AND THEIR CONCLUSIONS.

WE ALSO HAVE, I THINK WE HAVE HARD COPIES IF ANYBODY -- IF

[01:15:03]

IT'S NOT COMING UP ON YOUR SCREEN OR IF CAN YOU WANT TO SEE A FULL REPORT OR IF ANYBODY ELSE NEEDS A FULL COPY.

SO I JUST EXCERPTED PART OF THAT REPORT.

THIS IS THE COMING FROM FTN FINANCIAL AND HILL TOP SECURITIES.

THEY'RE FINANCIAL ADVISORS, THIS IS WHAT THEY DO FOR A LIVING.

BOTH JORGE AND RICHARD HAVE BEEN DOING IT FOR A LONG TIME.

THIS IS THEIR ASSESSMENT AND THEIR OPINION ON WHAT THE IMPACT WOULD BE.

AND I WON'T READ -- I'LL READ THE SECOND PART OF THE SENTENCE, SUCH AN OUTCOME WILL RESULT IN THE RATING AGENCY SEQUENTIALLY MOVING THE CITY OF SAN ANTONIO GENERAL OBLIGATION CREDIT TO NEGATIVE OUTLOOK TO BE FOLLOWED BY ONE OR MORE SUCCESSIVE CREDIT DOWNGRADES.

END QUOED.

YOU HAVE THE FULL REPORT THERE THAT GOES THROUGH THE ADDITIONAL ANALYSIS AS IT RELATES TO CHARTER AMENDMENTS.

THE NEXT SLIDE IS LOOKING AT QUANTIFYING THE IMPACT IF A DOWNGRADE WERE TO OCCUR.

WHAT THIS IS BASED ON, IT'S BASED ON $2.5 BILLION ISSUANCE OF DEBT.

ANDTY USED $2.5 MILLION BECAUSE THAT'S WHAT WE'VE ISSUED IN THE LAST TEN YEARS WITH THE BIGGER BOND PROGRAMS, THE REFINANCING OF DEBT, BECAUSE IT'S NOT JUST FOR FUNDING OF PROJECTS, EVERY CHANCE THEY HAVE TO REFINANCE BONDS, THAT'S AN ISSUANCE.

I USED THAT AS A KIND OF AN INDICATION OF WHAT WE -- WHAT THE IMPACT WOULD LOOK LIKE.

OBVIOUSLY IF THE CITY CONTINUES TO DO BIGGER BOND PROGRAMS, DO MORE PROJECTS, THESE NUMBERS GET BIGGER.

BUT TO GIVE YOU AN IDEA, IF YOU WERE DOWNGRADED ONE LEVEL JUST TO A DOUBLE A PLUS, WE THINK THAT THE RANGE THERE IS $17.5 MILLION TO $37.5 MILLION OVER THE LIFE OF THE BONDS, TWO LEVELS WOULD BE $45 MILLION TO $75 MILLION.

AND THREE LEVELS WOULD BE $125 MILLION -- $112.5 MILLION UP TO $132.5 MILLION.

THIS IS THE STRAIGHT GENERAL OBLIGATION BOND ISSUANCE.

THIS DOES NOT INCLUDE, I MENTIONED HOW WE WERE ABLE TO USE IT ON THE CONVENTION CENTER FINANCING, WE GOT HIGHER THAN AVERAGE PLAY THERE EVEN THOUGH OUR PROPERTY TAXES WEREN'T BEING USED.

IT DOESN'T COUNT THINGS LIKE THE FINANCING.

THE ONLY THING USED TO PAY FOR THAT DEBT IS THE CUSTOMER FACILITY CHARGE.

BUT WE GOT A BETTER DEAL THERE BECAUSE THE TRIPLE A WAS THERE.

AND I CAN'T TELL YOU HOW MANY TIMES I'VE BEEN IN A BOND ISSUANCE SINCE '07 WHERE WE'RE PUSHING A STRUCTURE.

WE'RE PUSHING SOMETHING THAT MAYBE THE MARKET DOESN'T TYPICALLY SEE.

WE'RE ABLE TO DO IT.

THE BANKER SAYS, HEY, THE ONLY REASON YOU GOT IT DONE THAT WAY, BECAUSE OF THE TRIPLE A BOND RATE EGG.

THERE'S A LOT OF BOND VALUE ON WHAT I'M SHOWING YOU HERE ON THE SLIDE IN TERMS OF POTENTIAL IMPACT.

THIS IS AGAIN GEO BONDS.

REMEMBER, THE CITY OWNS THE SAN ANTONIO WATER SYSTEM AND CPS ENERGY.

BELIEVE IF THESE PROPOSITIONS PASS, THERE WILL BE NEGATIVE PRESSURE ON THOSE RATINGS AS WELL.

THOSE RATINGS ARE SOME OF THE HIGHEST IN THE COUNTRY.

SAWS IS ONE NOTCH BELOW TRIPLE A ON ALL OF THE SENIOR LIEN DEBT AND CPS IS UNNOTCH BELOW WITH FITCH AND MOODY'S AND TWO NOTCHES BELOW S&P.

VERY STRONG RATINGS FOR THE ELECTRIC AND GAS UTILITY AND WATER AND WATER ACTIVITY.

NEGATIVE PRESSURE THERE I THINK.

THIS DOESN'T TAKE -- THAT DOESN'T TAKE THAT INTO ACCOUNT AT ALL.

SO THAT WRAPS UP MY PRESENTATION.

INDULGE ME FOR A SECOND, I WOULD LIKE JORGE RODRIGUEZ WITH FTN FINANCIAL AND RICHARD RAMIREZ WITH HILL TOP TO COME UP AND SHARE SOME OTHER THOUGHTS WITH YOU QUICKLY AS WELL.

I JUST GAVE YOU THE ONE EXCERPT FROM THE REPORT.

I JUST WANT TO -- TO GIVE THEM AN OPPORTUNITY TO SHARE A LITTLE BIT MORE WITH THEM AS WELL.

HOER HAY? -- JORGE?

>> THANK YOU, BEN.

MAYOR AND COUNCIL.

WE WERE ASKED TO REVIEW THE RATING CRITERIA AND LOOK AT IT IN CONTEXT.

AND TO PUT IT IN CONTEXT, I PERSONALLY REPRESENTED THE CITY OF SAN ANTONIO FOR 27 YEARS AS FINANCIAL ADVISOR AND FOLLOWED THIS RATING FROM A DOUBLE A 2 TO A DOUBLE A 1 AND TO THE EVENTUAL TRIPLE A RATING.

IT WORKED WITH THE RATING AGENCIES ALONG THE WAY IN THAT PROCESS.

THE -- THE POTENTIAL IMPACT OF THE RATINGS, IT -- WHEN BEN WAS

[01:20:03]

ADDRESSING THE LIMITATIONS TO GET YOU WHERE YOU ARE, ONE OF THOSE ARE THE LEGAL CONSIDERATIONS THAT ARE EMBEDDED IN ALL OF THE CHARTER, ALL OF THE STATUTORY CONSIDERATIONS THAT WOULD ALLOW THE FINALITY OF YOUR DECISION-MAKING PROCESSES TO BE SET IN STONE.

THE RATING AGENCIES, THE MUNICIPAL BOND COMMUNITY, DO NOT LIKE UNCERTAINTY IN -- IN AN ELECTED BODIES ABILITY TO HAVE FINAL DECISION MAKING AUTHORITY.

THE LOWERING OF THE THRESHOLDS FOR REVIEWING PETITION AND ULTIMATE VOTER APPROVAL ARE GOING TO BE REGARDED AS SIGNIFICANT IMPEDIMENTS TO THE FINALITY OF THE DECISIONS THAT YOU AS THE LEGAL PARTY ARE GOING TO BE ASKED TO BE MAKING.

WE VIEW THAT AS SIGNIFICANTLY INCREASING THE PROSPECT OF THE RATING AGENCIES DECREASING YOUR RATINGS OVER TIME.

AND MOVING MORE TOWARDS YOUR PUR PURELY OBJECTIVE, IF YOU WILL, RATING CRITERIA BEING THE ECONOMIC PROFILE OF THE CITY OF SAN ANTONIO, WHICH IS NOT THE STRONGEST ECONOMIC PROFILE FOR A -- FOR A MAJOR MUNICIPALITY IN THE UNITED STATES.

AS A MATTER OF FACT, ONE -- ONE QUOTE IN S&P'S REPORT IS VERY SIGNIFICANT.

WE WERE TALKING ABOUT HOW FEW MUNICIPALITIES HAVE TRIPLE A RATINGS AND YOU'RE THE ONLY ONE OVER A MILLION IN POPULATION.

THE ONLY ONE TO HAVE OBVIOUSLY THREE TRIPLE A RATINGS.

THE GOVERNMENT OF THE UNITED STATES, THE SOVEREIGN OF THE UNITED STATES DOESN'T EVEN HAVE THREE TRIPLE A BOND RATINGS.

AND IT SHOULD BE NOTED IN THE S&P REPORT, ONE OF THE THINGS THEY SAY IS SAN ANTONIO GEOBONDS ARE ELIGIBLE TO BE RATED ABOVE THE SOVEREIGN BECAUSE WE BELIEVE THE CITY CAN BETTER MAINTAIN CREDIT CHARACTERISTICS THAN THE U.S. IN A STRESS SCENARIO.

FOR THIS REASON, THESE RATINGS AFFECT THE MARKET ACCEPTABILITY, INTEREST COSTS, AND INSTITUTIONAL INVESTOR ACCEPTANCE WHILE PROVIDING MAXIMUM FLEXIBILITY IN THE LATITUDE AND THE DESIGN AND OFFERING OF ANY BORROWINGS UNDERTAKEN BY THE CITY OF SAN ANTONIO.

WHAT THAT REALLY SAYS IS THAT YOUR UNIQUE ABILITY TO RESPOND TO FINANCIAL CONSTRAINTS WITHOUT THE FORMIDABLE PROCESS OF THE U.S. LEGISLATIVE PROCESS AND SUBJECTING YOURSELF TO ALL OF THE REVIEW AND THE DEBATE THAT IS INHERENT IN THAT, ALLOWS YOU AS A MUNICIPALITY TO QUICKLY ADDRESS THE FINANCIAL CONSIDERATIONS THAT NEED -- THAT YOU NEED TO GET TO WHERE YOU NEED TO GO AS AN ELECTED BODY AND AS A CITY.

TO THROW VARIABLES INTO THE MIX THAT WOULD MAKE THOSE DECISIONS, WHETHER THEY'RE AT THE CITY -- WHEN THEY SAID ANY, THEY MEAN ANY OF YOU, ANY BARRINGS UNDERTAKEN FOR GENERAL OBLIGATION FOR AIRPORT, YOUR UTILITIES, WHAT HAVE YOU, ANY VARIABLES THAT WOULD SUBJECT ALL OF THOSE DECISIONS TO FURTHER REVIEW AND SCRUTINY AND POSSIBLE OVERTURNING ARE GOING TO SUBJECT YOUR CREDIT RATINGS TO INCREASE SCRUTINY AND WE BELIEVE AT THE END WILL RESULT IN DOWNGRADE.

>> THANK YOU.

MAYOR, COUNCIL MEMBERS, JORGE AND BEN HAVE SAID PRETTY MUCH EVERYTHING THAT NEEDS TO BE SAID.

BUT JUST TO TOUCH ON ONE THING.

BEN'S NUMBERS ELUDED TO OTHER COSTS, THERE ARE OTHER COSTS YOU CAN'T SEE.

I'M INVOLVED IN A LOT OF INFRASTRUCTURE FINANCING.

AND WHEN YOU DELAY PROJECTS, IF YOU HAVE TO GO THROUGH A VOTING OR REFERENDUM PROCESS.

HE CAN ONLY DO ELECTIONS SO MANY TIMES A YEAR.

YOU'RE TALKING ABOUT A YEAR, PERHAPS A YEAR AND A HALF, TWO YEARS.

HE GETS TO INFLATION, THE PROJECTS THAT I DO MOSTLY ROADS, AIRPORTS, SO FORTH, IT'S ABOUT 2% A YEAR.

SOAR YOU'RE TALKING ABOUT TACKING ON MORE COSTS WHEN

[01:25:01]

PROJECTS ARE DELAYED.

BUT HAVING SAID ALL THAT, I THINK IT'S REALLY IMPORTANT TO DEFEAT THE REFERENDUMS IN TERMS OF STATUS QUO IN TERMS OF RATINGS FOR THE CITY, THANK YOU.

HAPPY TO ANSWER ANY QUESTIONS.

>> OKAY.

THANK YOU.

IS THAT THE END OF THE PRESENTATION.

>> SO MIKE FRISBIE IS AVAILABLE TO ANSWER QUESTIONS ON THE TCI BUDGET, TRANSPORTATION AND CAPITAL IMPROVEMENTS, BEN GORZELL ON THE DEBT PLAN AS WELL.

AND ME TOO.

>> OKAY, GREAT.

THEN I WILL START WITH YOU WHERE YOU LEFT OFF.

THAT'S AS PLAIN AND BLACK AND WHITE AS WE'VE GOTTEN WITH REGARD TO THE TRIPLE A AND WHAT THESE POTENTIAL ELECTIONS MIGHT MEAN ON SLIDE 22.

THAT'S STILL NOT ENTIRELY CLEAR LANGUAGE.

BUT THE LAST TIME WE GOT SUCH A WARNING, HAVE WE EVER GOTTEN A WARNING LIKE THIS?

>> NO.

NOT LIKE THIS.

WE'VE BEEN ON NEGATIVE OUTLOOK ONCE BEFORE WITH MOODY'S.

BUT THAT GOES BACK TO 2010, '11 TIME FRAME.

>> RECESSION.

>> DURING THE RECESSION.

>> AND IT WAS DONE AS A RESULT OF THEIR PUTTING THE U.S.

GOVERNMENT ON NEGATIVE OUTLOOK.

AND BECAUSE OF OUR LINKAGE AND SOME OF THE GRANT FUNDING WE GOT, WE ALSO GOT ON NEGATIVE OUTLOOK.

OUR FUND BALANCE DIPPED A LITTLE BIT.

I TALKED ABOUT THAT, 2012, IT DIPPED SLIGHTLY.

WE WERE RATED WITH MOODY'S.

WENT UP TO DALLAS, MET WITH THEM AGAIN.

THEY WERE CONCERNED ABOUT THE DIP AND THE DRAW AND WHAT WE WERE DOING.

BUT WE WERE ABLE TO CONVINCE THEM WE'RE ON A SOLID POSITION AND WE'RE GOING TO ADDRESS IT.

WE DID.

THAT CAME BACK THE FOLLOWING YEAR SAYING WE'RE SURPRISED YOU GOT THAT DONE AS QUICK AS YOU DID.

WE'VE BEEN ON STABLE OUTLOOK EVER SINCE.

WHAT THEY SHARED WITH US, WITH ME, LOOK, WE'RE NOT GOING TO SPECULATE ON ELECTIONS.

I WILL TELL YOU COMING OUT OF THE MEETINGS WITH THEM IN JULY, I DIDN'T COMPN'T TO SEE ANYTHING IN THE REPORTING ABOUT IT.

BECAUSE Y'ALL HAVEN'T CALLED THE ELECTION YET.

HASN'T HAPPENED YET.

THE ELECTION HASN'T HAPPENED YET.

WE DON'T KNOW WHAT THE OUTCOME IS.

THIS IS MORE CONCERNING TO ME WHEN I GOT THIS REPORT AND IT WAS IN THERE.

>> HOW IS THIS DIFFERENT THAN A NEGATIVE OUTLOOK?

>> SO THEY HAVE, BECAUSE THE ELECTION HASN'T HAPPENED YET, THEY'RE NOT TAKING ANY ACTION.

THEY'RE SAYING WE'RE GOING TO SEE WHAT HAPPENS.

>> THIS IS A FLAT OUT WARNING.

>> THIS IS MORE OF A WARNING.

THIS IS WHAT, YOU KNOW, THIS IS WHAT YOU -- THIS IS WHAT WE SEE IN TERMS OF THE POTENTIAL IMPACT HERE.

BUT, AGAIN, THEY DON'T LIKE TO SPECULATE OR TAKE ACTION ON THINGS THAT HAVE TO HAPPEN.

>> RIGHT, OKAY.

SO, FLIPPING OVER TO SLIDE 24 THEN? AND I HEARD IT FROM JORGE AND YOU AND WE HEARD IT FROM OTHERS ABOUT A LIKELIHOOD OF A DOWNGRADE BECAUSE OF THIS.

NOW THIS IS GETTING TO DOLLARS AND CENTS FOR WHAT IT MEANS TO THE SAN ANTONIO TAXPAYER.

THIS IS WHAT IT MEANS.

SO GROSS COSTS, TRANSLATE THAT TO THE AVERAGE HOMEOWNER? IN EACH OF THESE POTENTIAL DOWNGRADE SCENARIOS.

>> I CAN'T TRANSLATE IT NECESSARILY TO A TAX IMPACT TO A HOMEOWNER.

BUT I TELL YOU, AS YOU LOOK AT EVERY ONE OF THESE, YOU CAN GO TO THE BOND PROGRAM AND PICK A PROJECT OF THAT SIZE AND WE DON'T DO THAT PROJECT.

THAT'S THE IMPACT.

SO, WHETHER YOU'RE TALKING ABOUT A SENIOR CENTER, A BIG ROAD PROJECT, SEVERAL PROJECTS, IT MEANS THAT WE TAKE THEIR TAX DOLLAR AND WE SPEND MORE OF IT ON INTEREST COSTS AND LESS OF IT ON DELIVERING A PROJECT.

THAT IS REALLY WHAT -- AND FROM MY STANDPOINT, THIS DOES NOT CAPTURE THE FULL IMPACT OF THE TRIPLE A.

THIS IS MORE DIRECT SPREAD WE WOULD SEE IF WE WERE DOWNGRADED BETWEEN A TRIPLE A AND A LOWER RATING, THIS DOES NOT TAKE INTO CONSIDERATION, AGAIN, ALL OF THE BOND ISSUES THAT WE DO THAT AREN'T EVEN GEO RELATED THAT OUR AIRPORT, CONVENTION CENTER, WHERE IT'S THE SAME CONCEPT BECAUSE OF THE NAME, BECAUSE OF THE TRIPLE A, WE'RE ABLE TO DO STRUC STRUCTURES, HARD TO DESCRIBE, COUPONS, THE WAY WE SET THE DEAL UP DIFFERENTLY AND WE CAN GO MARKET IT AND PEOPLE ARE GOING TO GO BUY THOSE BONDS BECAUSE THEY HAVE CONFIDENCE IN THE CITY AND BECAUSE THEY HAVE CONFIDENCE IN THE TRIPLE A BOND RATING.

NONE OF THAT IS CAPTURES HERE.

>> SO, I'M TRYING TO MAKE IT INTO -- WELL, THE WAY I CAN EXPLAIN IT TO MY SON.

SO, IF THERE WAS A DOWNGRADE OF ONE LEVEL, THE COST TO THE SAN ANTONIO BUDGET WOULD BE $17.5 MILLION TO $37 MILLION OUT OF PRODUCTION AND INTO INTEREST COSTS.

>> CORRECT.

>> SO ANYWHERE FROM $1.5 MILLION TO $132 MILLION BASICALLY TAKEN OUT OF PROJECTS LIKE HOUSEN ROAD OR WHATEVER AND SENT TO THE BANK TO PAY FOR INTERESTS.

[01:30:01]

>> THAT'S CORRECT.

>> AND IF YOU LOOK AT, AGAIN, THE MOODY'S, I ELUDED TO AND JORGE TALKED ABOUT IT.

IF YOU JUST GO THROUGH THE SCORECARD AND YOU LOOK AT WHERE SAN ANTONIO LANDS ON THAT SCORECARD, WE'RE DOUBLE A 3.

THAT'S THIS -- THIS IS THAT DOUBLE A MINUS CAN IT GORE.

$112.5 MILLION TO $132.5 MILLION RANGE.

THAT'S THE NATURAL RATING IF YOU WANT TO CALL IT THAT.

>> THINK ABOUT HUISMAN ROAD.

YOU MENTIONED THAT.

THAT WAS 43 MILLION OUT OF OUR 2012 BOND PROGRAM.

WE WORKED WITH THE COUNTY ON THEIR DRAINAGE IMPROVEMENTS IN TOTAL BETWEEN TX-DOT, THE COUNTY, THE CITY, IT ENDED UP BEING ALL FUNDS COMBINED AND CPS AND SAWS REPLACING THEIR UTILITIES, OVER $70 MILLION AS A PROJECT.

SO, THE PRIVATE SECTOR CONSTRUCTS THAT FOR US, DESIGNS IT, AND CONSTRUCTS IT.

SO THINK ABOUT THE IMPACT ON JOB CREATION, THOSE PEOPLE EMPLOYED WORKING ON THAT PROJECT, THE IMPACT TO UTSA, BECAUSE THAT WAS A PROJECT THAT WE WERE COMMITTED TO IMPROVING THE MOBILITY IN AND AROUND THE UNIVERSITY AS ONE OF THE PROJECTS WHEN YOU WERE REPRESENTING THE COUNCIL DISTRICT.

SO THIS IS DIRECTLY INTEREST COSTS IN THE CITY.

BUT THEN THOSE OTHER INTANGIBLES AS WELL AS THE COST OF CONSTRUCTION, THOSE WORKERS WHO WERE NOT WORKING, THAT CONSTRUCTION PROJECT.

BECAUSE INSTEAD WE'RE PAYING INTEREST INSTEAD OF PUTTING THAT MONEY INTO PRODUCTION.

SO IF YOU THINK ABOUT IT THAT WAY AND SEVERAL HUNDRED PEOPLE THAT WORKED IN THE HUISMAN ROAD PROJECT.

>> PRIMARILY WHEN I SAID THAT THIS WAS THE INTEREST COSTS IMPACT FOR THE DOWNGRADES.

I MENTIONED ONE OF THE PROJECTS DOESN'T GET DONE.

EVERYTHING WE DO, I DON'T ASSUME THE DEBT SERVICE TAX RATE CHANGES.

YOU MAKE UP FOR THE INTEREST COSTS.

WE HAVE NOT MADE THAT DISLE TINKS.

>> RAISE THE TAX RATE TO PAY FOR THE INTEREST COSTS BECAUSE OF IF DOWNGRADE.

>> IF YOU WANT TO DO THE SAME LEVEL OF PROJECTS.

BUT FROM OUR PERSPECTIVE, THE TRIPLE A ALLOWS US TO TAKE THAT TAX DOLLAR AND USE AS MUCH OF IT AS WE CAN ON ACTUALLY DOING A PROJECT AS OPPOSED TO PAYING FOR INTEREST.

>> OKAY.

ALL RIGHT.

SO I KNOW WHERE THAT CONVERSATION WILL GO.

OKAY.

YOU MENTIONED THE DIFFERENT RATINGS ON THE DIFFERENT ENTERPRISE FUNDS AS WELL AS THE AIRPORT.

IT'S CURRENTLY AT -- YOU SAID, A SINGLE A?

>> YES, SIR.

SLIDE SEVEN.

>> WHERE'S OUR PEER GROUP ON AIRPORT DEBT? --

>> THEY'RE GOING TO BE AROUND THAT CATEGORY, AGAIN, WITHOUT BEING A HUB BEING MORE OF AN ORIGINATION DESTINATION, THAT'S ABOUT COMPARABLE FOR WHAT YOU WOULD EXPECT AN O&D AIRPORT TO BE AT.

AND THEN AIRPORTS BY VIRTUE OF BEING AIRPORTS, THEY ARE JUST MORE VOLATILE AND THEY'RE GOING TO HAVE A HIGHER RISK ASSOCIATED WITH THEM AND THEREFORE A LOWER CREDIT RATING.

>> MAYOR, I'D ADD WHEN WE WERE IN NEW YORK A YEAR AGO FOR THE BOND RATINGS, THE RAIDERS FOR THOSE WHO RATE AIRPORTS SAT IN ON OUR GO PRESENTATION BECAUSE WE TALKED ABOUT THE G.O. RATING, WE WERE THERE TO TALK TO THEM ABOUT THE AIRPORT.

THOSE WHO RATE -- BECAUSE IT'S DIFFERENT PEOPLE WHO RATE THE ENTERPRISE OPERATIONS AS COMPARED TO THE GENERAL FUND, THEY SAT IN ON THE PRESENTATION WHICH WE THOUGHT WAS A GOOD THING BECAUSE WE WANTED THEM TO KNOW HOW STRONG OUR G.O. RATING WAS AND OVERALL FINANCIAL MANAGEMENT OF THE CITY.

THAT HELPED US IN THE FINANCING OF THE CONSOLIDATED CAR RENTAL FACILITY.

THAT'S COMPLICATED FINANCING.

>> DOES THE ACTIVITY AT THE AIRPORT AND THE -- YOU KNOW, THE EXPANDED SERVICE AND MORE PASSENGERS AND ALL THAT, DO YOU ANTICIPATE THAT RATING IMPROVING?

>> NOT AT THIS TIME.

I THINK WHERE WE'RE AT, I THINK OUR GOAL IS TO MAINTAIN IT AT THAT LEVEL.

I MENTIONED THAT REALLY TWO YEARS AGO WHEN WE MET WITH THEM? TWO -- I THINK TWO YEARS AGO, WE HAD A DISCUSSION WITH THE AIRPORT ANALYST.

AND IF ANYTHING I GOT OUT OF THAT, THERE'S PROBABLY PRESSURE ON THIS RATING.

I THINK WHAT WILL HELP, MAYOR, IS WHEN WHEN HE GET THROUGH THE MASTER PLANNING PROCESS AND WE HAVE THE STRATEGIC PLAN FOR THE AIRPORT, THEN WE BUILD THE FINANCING PLAN AROUND THAT, THAT'S REALLY WHERE WE LOOK AT AND SAY CAN WE IMPROVE THIS, WHAT CAN WE DO THERE? I THINK RIGHT NOW WE'RE KIND OF IN A HOLDING PATTERN.

>> OKAY.

GREAT.

[01:35:01]

YOU KNOW, I FULLY SUPPORT WHAT -- WHAT YOUR TEAM DID WITH THE HUD-108.

WE'VE BEEN ASKING FOR THAT FOR A FEW YEARS.

FINALLY MADE FINANCIAL SENSE TO DO IT.

CAN YOU QUANTIFY THAT BEFORE ANYBODY GETS THE WRONG INFORMATION? HOW MUCH.

>> WE'LL PLAN TO DO THAT THIS FALL.

IT WILL BE BASED ON MARKET CONDITIONS.

BASED ON THE LAST RUN WE DID WE'LL SAVE AN INTEREST COST OF $2.8 MILLION.

THERE'S ABOUT SEVEN YEARS I THINK LEFT ON THAT NOTE.

>> EXCELLENT.

WELL, ALWAYS APPRECIATE YOUR GOOD WORK, THEN, I THINK IT'S THE MOST THRILLING OF ALL OF THE BUDGET CONVERSATIONS.

SO THANK YOU, AGAIN, FOR DOING IT.

I DO HAVE A COUPLE -- I'M NOT JOKING.

I'M LAUGHING BECAUSE I THINK COUNCIL VIAGRAN WAS AGREEING WITH YOU.

>> I DO -- TWO QUICK ONES FOR YOU, MIKE, ALSO.

GREAT WORK TO YOU AND YOUR TEAM.

SO I WISH YOU COULD TAKE THAT INVENTORY SLIDE AND PUT IT EVERYWHERE WE POSSIBLY CAN GO.

BECAUSE I THINK THAT'S A REALLY GOOD -- JUST A REALLY GOOD REALITY CHECK FOR THE MASSIVE RESPONSIBILITY THAT YOUR DEPARTMENT WILL MAKE SURE EVERY POTHOLE IS FILLED AND LANE IS STRIPED AND ROAD IS PAVED.

ULTIMATELY WHAT THIS MEANS IS THIS IS PRIORITIZED VERY WELL AND I THINK WE'VE BEEN DOING IT PRETTY WELL.

BUT AS MUCH AS YOU CAN GET THAT OUT, I THINK PEOPLE GET A SENSE OF WHAT THEY OWN IN THIS -- IN THIS WHOLE CONVERSATION, OUR CITIZENS.

MY QUESTION IS EFFICIENCY.

YOU'RE 12 LIGHTER THIS YEAR.

>> LET ME TAKE THAT BACK.

LAST YEAR, YOU ADDED POSITIONS FOR THE BOND AS RECOMMENDED BY THE CITY MANAGER.

THIS YEAR WE'RE ASKING FOR ADDITIONAL POSITIONS FOR THE BOND.

BUT AHEAD OF THAT, WE CUT 29 POSITIONS IN MULTIPLE YEARS BECAUSE THE BOND WAS ON A --

>> AND THAT'S CUTTING THROUGH ATTRITION, NOT -- NOBODY LOST THEIR JOBS.

>> NO.

>> JUST ELIMINATED POSITIONS.

>> THAT'S RIGHT, THAT'S RIGHT.

THAT WAS BY PLAN.

AND NOW WE'RE RAMPING BACK UP.

BUT THE GOAL IS NOT TO GO BACK TO THAT HIGHER LEVEL OF STAFFING COMPLETELY.

SO WE'VE -- WE'VE DONE A LOT.

WE'VE GOT A PERFORMANCE MANAGEMENT TEAM.

YOU WORK WITH THE INNOVATION TEAM.

WE'VE STREAMLINED LOTS OF PROCESSES AND MADE THINGS BETTER AND SO FORTH.

WE HAVE A LOT OF WORK TO DO YET, BUT, IN THE COURSE OF THAT, WE'RE ABLE TO MANAGE A 40% LANCHER BOND PROGRAM GOING FROM 596 TO 850 WITH ULTIMATELY IF THESE POSITIONS ARE ADDED TO THE -- TO THE BUDGET, WE'LL STILL END UP WITH 12 FEWER POSITIONS THAN WE'VE HAD BEFORE.

WE'RE COMFORTABLE THAT WE WILL BE SUCCESSFUL.

>> THEY'RE KEEPING UP WITH EVERYTHING.

>> YES, SIR.

>> AND THE LARGEST BOND PROGRAM IN THE CITY'S HISTORY.

THAT'S THE PART THAT I WAS TAKEN ABACK TO HEAR THAT YOU'RE MORE EFFICIENT BUT YOU HAVE MORE RESPONSIBILITY.

SO ON THAT NOTE, THE BOND PROGRAM DASHBOARD HAS CHANGED.

IT'S NOT THE SAME AS IT WAS IN 2012.

AND I'M NOT CLEAR ON WHERE WE ARE IN THE TIMELINE OF COMPLETION FOR ALL OF THE PROJECTS.

COULD YOU GIVE US A SNAPSHOT OF THE 2017 BOND?

>> SURE.

WE DID -- YOU KNOW, YOU CAN GO LIVE AND SEE THE DASHBOARD.

WE WENT TO THE OPEN OFFICE SETUP WITH THAT AS THE CITY WAS LOOKING AT IT IN A VARIETY OF WAYS WORKING WITH THE ISD.

BUT IT LOOKS A LITTLE DIFFERENT.

BUT THERE'S A LOT MORE INFORMATION THERE NOW AND YOU CAN STILL DRILL DOWN ON ALL OF THE PROJECTS TO SEE HOW'S THAT PROPOSITION DOING, HOW'S THAT SPECIFIC PROJECT B DOING? SO, WE'RE ON TRACK AS A WHOLE.

EXCEPT FOR THE ONE PROJECT, THE DISTRICT 2 PROJECT THAT NEEDS TO BE REALLOCATED.

WE'RE ON TRACK AS PLANNED.

WE PLAN TO BE SUBSTANTIALLY COMPLETE WITHIN THE FIVE YEAR PERIOD OF THE BOND.

>> GOT IT.

GREAT WORK, MIKE, YOU AND YOUR TEAM AS WELL.

THANK YOU.

COUNCILWOMAN VIAGRAN?

>> THANK YOU, MAYOR.

THANK YOU, MIKE.

AND TEAM.

APPRECIATE THE PRESENTATION.

BEN, YES I APPRECIATE THE PRESENTATION AS WELL.

I DO HAVE TO SET THE STAGE BEFORE YOUR -- BEFORE MY QUESTION TO YOU, THEN I HAVE A COUPLE MORE OR JUST COMMENTS AND POINTS OF CLARIFICATION, BEN, IF YOU COULD COME UP HERE.

ON SLIDE THEN 22 ON SLIDE THEN 2 GOOD WORK TO THE FINANCE TEAM THAT NEVER GETS TO COME OUT MUCH.

THANK YOU, IT'S GOOD TO SEE YOU ALL.

ON SLIDE 22.

I THINK THE BIGGEST PORTION FOR ME WAS IN THE S&P THAT STATES WE

[01:40:01]

BELIEVE THE CHANGES TO THE REFERENDUM PROCESS IN PARTICULAR COULD HAVE A MATERIAL NEGATIVE IMPACT ON THE CITY'S FINANCES.

I'M NOT A LAWYER.

BUT I KNOW WHEN EVER SOMETHING SAYS "MATERIAL" NEGATIVE IMPACT, THAT'S SOMETHING VERY SIGNIFICANT.

AND I DON'T THINK -- FIRST OF ALL, HOW DID THEY KNOW ABOUT THIS REFERENDUM IN THE CITY CHARTER AMENDMENTS? IS IT BECAUSE THIS IS ONE OF THE THINGS THAT WE HAVE TO SHARE WITH THEM AS A DUE DILIGENCE TO LET THEM KNOW WHAT'S HAPPENING IN OUR CITY?

>> YES.

WE TALKED WITH THEM ABOUT ALL ASPECTS.

HOWEVER, IN THIS CASE, THEY'VE ASKED US ABOUT IT.

WE DIDN'T EVEN SAY ANYTHING.

AND THEY BROUGHT IT UP.

BUT LET ME SAY THAT THE ANALYSTS FOLLOWED SAN ANTONIO CLOSELY.

WE'VE TALKED WITH THEM OVER THE YEARS ABOUT OUR STRATEGY COUNCIL -- COUNCIL APPROVED STRATEGY IN NEGOTIATING THE POLICE AND FIRE CONTRACTS.

THEY ARE ON TOP OF THAT.

THEY KNOW WHAT HAS HAPPENED OVER THE LAST FIVE YEARS, WHAT WE'VE TRIED TO ESTABLISH IN TERMS OF THE BUSINESS PLAN FOR MANAGING THOSE COSTS.

AND THEY WATCH PUBLIC SAFETY BE A GREATER AND GREATER PERCENTAGE.

THEY FOLLOWED US CLOSELY.

THEY KNEW ABOUT THOSE PROPOSITIONS AND ASKED US QUESTIONS ABOUT THEM IN THE RATING IN JULY.

>> OKAY.

>> ALL THREE AGENCIES.

>> OKAY, THANK YOU.

AND I THINK ON THAT NOTE, AND WHAT YOU WERE SHARING AND ALSO WHAT OUR -- OUR REPRESENTATIVES WERE SHARING AS WELL, OUR CONSULTANTS.

I THINK IT'S VERY CLEAR THAT YOU NOTE THAT I DON'T THINK THIS SHOULD BE -- THIS IS NOT A SCARE TACTIC IN WHAT WE'RE SHARING.

THIS IS A TANGIBLE FORECAST THAT THEY ARE LAYING OUT FOR THE CITY OF SAN ANTONIO.

AND THAT -- THAT WE -- THERE WILL BE AN IMPACT ONE WAY OR THE OTHER WHERE DOLLARS ARE GOING TO BE GOING TO THINGS OTHER THAN -- TO THINGS THAT DIDN'T HAVE TO GO THERE BEFORE.

IF WE LOSE THIS BOND RATING.

SO -- AND I MEAN I THINK THAT'S IF WE -- THE BOND RATING IN WHICH EVER FORM OR FASHION.

SO, I THINK -- THAT'S MY COMMENT FOR THAT.

AND SO, IN LIGHT OF THAT, MIKE, CAN YOU COME UP NOW, CAN YOU JUST DO ALL OF OUR PROJECTS FASTER? IF ANYTHING HAPPENED BEFORE NOVEMBER? JUST IF YOU COULD MOVE THINGS AROUND, THAT WOULD BE GREAT.

NO, FIRST OF ALL, THE VIDEO WAS VERY GOOD.

AND I DO WANT TO THANK ALL OF THE EMPLOYER -- EMPLOYEES AND TEAM MEMBERS AND STAFF MEMBERS WHO ARE OUT THERE RIGHT NOW IN 100-DEGREE HEAT IN OUR STREETS AND MAINTENANCE DEPARTMENT WHO ARE OUT THERE AND WHO ARE THERE DOING THE WORK.

I WANT TO THANK THEM FOR THEIR WORK TO MAKE SURE THEY'RE DOING THE POTHOLE PATROL AND THE SITE INSPECTIONS TOO.

SO I KNOW THAT'S NOT EASY AND I APPRECIATE ALL OF THEIR WORK THAT THEY DO.

I DO WANT TO TALK ABOUT -- I GUESS, WHEN WE'RE TALKING ABOUT THE $11 MILLION, MARIA OR JUS T -- JUSTINA, WHERE DID THAT $11 MILLION COME FROM THAT WE'RE USING FOR THIS ADDITIONAL $11 MILLION?

>> THE OPERATING DOLLARS, WHICH IS OUR GENERAL FUND AND OUR CAPITAL BUDGET THAT MAKE UP THE $110 MILLION FOR STREET MAINTENANCE.

>> OKAY.

>> AND I'M VERY PROUD TO -- TO HAVE BEEN A PART OF THIS COUNCIL THAT MOVED FROM, YOU KNOW, FROM $3 MILLION OR $35 MILLION TO NOW $110 MILLION.

BECAUSE THAT HAS BEEN THE PRIORITY FOR OUR RESIDENTS AND FOR OUR COMMUNITY.

AND PUBLIC SAFETY AS WELL.

BUT WE'LL GET BE INTO THAT TOMORROW.

ONE OF THE THINGS I ALSO WANTED TO ASK ABOUT IS THE SIDEWALKS, FOR CLARIFICATION ON YOUR SIDEWALKS SLIDE PRESENTATION.

BECAUSE HERE IN SLIDE NUMBER 18, IT SAYS FY-2019 FOR $19 MILLION.

BUT THEN WE HAVE $9 MILLION IN ATD AND $10 MILLION IN BOBBED.

HOW IS $19 MILLION IF WE'RE DESIGNATING THE 10 MILLION FOR THE BOND.

>> WE'RE CONSIDERING WHAT FUNDING IS FOR THE PROGRAMMING OF FY-19 FOR SIDEWALKS.

YOU KNOW, THE BOND PROGRAM, $48 MILLION DEDICATED TO SIDEWALKS.

OF COURSE, THAT'S OVER THE LIFE OF THE BOND.

WE PLAN TO ALLOCATE THE $10 MILLION IN FY-19 PLUS THE ATD IS

[01:45:02]

THE $9 MILLION.

>> SO WE'RE GOING TO ALLOCATE THAT $10 MILLION IN THIS FISCAL YEAR.

>> YES.

>> THAT'S THE PROGRAMMING FOR PROJECTS FOR THIS COMING FISCAL YEAR.

>> FOR THE SIDEWALK MASTER PLAN, OR THE SIDEWALK PRIORITIZATION CRITERIA, I DID WANT TO GO INTO THAT AND FIND OUT SPECIFICALLY ON PRIORITIZATION CRITERIA NUMBER FIVE ON THE CLINICS AND THE HOSPITALS, CAN YOU GIVE ME A BREAKDOWN OF THE CLINICS AND THE HOSPITALS, THE EQUITABLE DISTRIBUTION BETWEEN ALL OF THE COUNCIL DISTRICTS.

SOME DON'T HAVE ANY HOSPITALS.

THERE ARE SOME THAT DON'T HAVE MORE CLINICS THAN OTHERS.

AND THEN FOR A DOCTOR'S OFFICE IN GENERAL, OR -- YEAH, DOCTORS' OFFICES PER DISTRICT,S YOU KNOW, DISTRICT 9 HAS 13 -- 1,395 DO DOCTORS' OFFICE, COUNCIL DISTRICT 3 HAS 279 DOCTORS OFFICES.

I WANTED TO MAKE SURE THIS IS WHAT IT LOOKED LIKE.

I WOULD LIKE TO SEE THE BREAKDOWN HERE WITH THE CRITERIA FOR THE CLINICS AND HOSPITALS.

>> BE GLAD TO FOLLOW UP ON THAT.

SORRY.

>> THANK YOU, VERY GOOD.

AND NEXT, WITH THE IT FINER INSTALLATION, I THINK IT GOES BACK TO WHAT YOU MENTIONED AT THE VERY BEGINNING AND THE TRUST FACTOR AND THE TRUST FACTOR WITH THE CITY IN GENERAL.

WHEN WE HAVE THE FIBER INSTALLATIONS THROUGHOUT THE ENTIRE CITY AND PEOPLE HAVE SIGNS THAT SAY SOME WORK IS BEING DONE, BUT IT'S WITH A -- IT'S WITH -- THANK YOU FOR THAT SLIDE.

THE 3 SCHILLINGS 818 PERMITS OR FIBER DEPLOYMENT, PERMITS ISSUED.

SORRY, 1600 PERMITS ISSUED.

OUT OF THE 1600 PERMITS ISSUED, DO WE KNOW HOW MANY COMPLAINTS WE HAVE WITH THOSE?

>> WE DO.

WE'VE BEEN TRACKING THAT -- I DON'T KNOW IF WE HAVE IT WITH US TODAY.

BUT WE HAVE THAT RECORDED.

SO BY COMPANY.

BY MONTH.

I DO HAVE THE COMPLAINTS.

I DON'T KNOW IF I CAN GIVE YOU -- I HAVE A SNAPSHOT AT THIS LAST MONTH.

WE'RE ACTUALLY IN JUNE TO SAY THAT, YOU KNOW, WE HAD A NUMBER OF COMPLAINTS.

WE HAD THREE RELATED TO AT&T WORK.

TEN RELATED TO GOOGLE WORK.

AND NONE FOR THE OTHERS.

SO THOSE COMPLAINTS ARE COMING THROUGH A VARIETY OF WAYS.

BUT WHEN WE RECEIVED THEM THROUGH 311, SOME HAVE COME THROUGH YOUR OFFICE, THEN WE ADDRESS IT.

MARCUS IS HERE.

HE HEADS UP THE TEAM.

WE JUMP ON THOSE.

>> WHAT IS THE RESOLUTION AND HOW CAN WE MAKE SURE WE KIND OF CLOSE THE CIRCLE ON OUR END OF THE OFFICES WHEN WE DO HAVE RESIDENTS CALLING OUR OFFICE AND WE MAKE SURE SOMETHING GETS RESOLVED FOR THE COMMUNITY MEMBERS HAVING TO GO THROUGH DIFFERENT THINGS?

>> YEAH, LAST YEAR, WE HAD A STOP WORK.

WE SAID EVERYBODY STOP, OKAY? WE'VE GOT TO SET THE STAGE HERE.

WE INSTITUTED A NEW COMMUNICATIONS STRATEGY.

IT'S THE HEAD OF THE PROJECTS THAT HELPS SO THAT PEOPLE ARE AWARE OF WHAT'S COMING.

WE TALKED VERY DIRECTLY WITH MEETINGS WITH EACH COMPANY IN MAKING SURE THEY'RE SIGNED, UNIFORMED, AND UNDERSTAND THE PROBLEMS WITH IMPACTING THE RESIDENTS AND BUSINESSES.

SO THAT'S A HELP.

SO WHEN SOMETHING DOES HAPPEN.

WHEN THEY HIT -- BECAUSE WHEN ALL OF THESE COMPANIES AREN'T MICROTRENCHING.

RIGHT NOW, GOOGLE IS THE ONE MICROTRENCHING.

OTHERS ARE USING DIFFERENT MEANS.

SO WHEN THERE IS AN IMPACT, WE JUMP IN WITH THEM AND IF IT'S A UTILITY COMPANY, WHOEVER TO GET IT SOLVED ALONG WITH THE RESIDENT.

>> OKAY.

OKAY.

AND WE'LL JUST FOLLOW UP WITH YOU ON MAKING SURE THAT THOSE -- THOSE CIRCLES ARE CLOSED THERE.

SO WITH THE DRAIN -- ACTUALLY, NO.

LET ME GO BACK TO -- BACK THE COMPLETE STREET REPAIR PROJECTS.

AS WE DO COMPLETE REPAIR PROJECTS, SOME OF THE RESIDENTS ARE ASKING WHEN WE DO THE REHABILITATIONS AND NOW THE POLICIES COMPLETE STREETS, SOME OF THE ISSUES ARE -- MORE OF AN OVERLAY, CURBS.

AND CURBS THAT ARE BROKEN AND NOT FUNCTIONING PROPERLY.

AND SO HOW ARE WE -- HOW ARE WE MAKING IT A STANDARD TO ADDRESS THE CURBS IN THOSE REHABILITATIONS IN THE PROJECTS.

>> THAT'S SOMETHING BASED ON FEEDBACK A LITTLE OVER A YEAR AGO, WE STARTED WITH THE STREET MAINTENANCE PROGRAM ASSESSING BEFORE THE PROJECT THE CURBS, SIDEWALKS, NOT NECESSARILY PLACING A WHOLE LENGTH OF SIDEWALK OR THE PROJECT, BUT COMING IN WITH AN OVERLAY PROJECT AHEAD OF TIME, REPLACING

[01:50:02]

SECTIONS OF CURBS, REPLACING SOME PANELS IF THEY'RE IN POOR SHAPE FOR SIDEWALKS RATHER THAN JUST DOING THE ASPHALT WORK AND LEAVING THE CURBS IN BAD SHAPE.

SO THAT HAS BEEN IN PRACTICE.

IT'S PART OF THE PROGRAM NOW AS OF THE LAST COUPLE OF YEARS.

>> AND AS WE'RE LOOKING AT KIND OF -- AS WE'RE ALSO LOOKING AT RELIEVING CONGESTION AND BUILDING OUT MOBILITY AND MULTIMODAL ACCESS, ONE OF THE THINGS I WANTED TO TALK ABOUT AND I'LL BRING IT UP AGAIN BECAUSE I THINK IT'S IMPORTANT TO STATE HERE IS THE -- THE -- OUR EQUITY IN WHAT WE'RE WORKING ON FOR CONGESTION AND BEING PROACTIVE.

AND MAKING SURE THAT EVERYTHING MOVES ACCORDINGLY THROUGHOUT THE CITY AND THROUGHOUT THE COUNTY.

AND WHAT ARE WE DOING WHEN WE'RE TALKING ABOUT EQUITY AND IT COMES TO MORE OF THE TX-DOT AND THE COUNTY? AND MAKING SURE THAT WE ARE NOT JUST PUTTING DOLLARS INTO DOLLARS.

THOSE ALREADY CONGESTED AREA OF TOWN.

BUT PUTTING DOLLARS INTO TX-DOT AND THE COUNTY TO MAKING SURE WE'RE PROACTIVE SO WE DON'T HAVE TO END UP DOING WHAT WE'RE DOING IN OTHER PARTS OF THE CITY.

SO HOW ARE WE WORKING ON THAT?

>> WE DO, COUNCILWOMAN.

AS YOU KNOW FROM THE LAST CALL FOR PROJECTS THROUGH THE NPO, WE LOOK AT THE PROJECTS THAT WE THINK ARE BENEFICIAL ALL OVER THE CITY.

AND USUALLY SIX OR EIGHT PROJECTS ALL THROUGHOUT THE CITY ARE REDUCED IN THAT PROCESS.

THEY HAVE AN OBJECTIVE SCORING CRITERIA THAT INCLUDES CONGESTION AND SO FORTH.

WE TALKED WITH -- WE HAVE ABOUT ANOTHER TWO YEARS BEFORE THE NEXT CALL FOR PROJECTS COMES OUT.

WE'VE HAD SOME DISCUSSIONS ABOUT THAT VERY THING AND HOW DO YOU INTRODUCE INTO THAT SCORING PROCESS SOMETHING THAT IS PROACTIVE.

IT'S AHEAD OF CONGESTION YOU KNOW NOW THAT -- THAT'S PART OF THE PROCESS WE'RE MOVING FORWARD WITH THAT DISCUSSION.

SO WE'LL SEE HOW THAT TURNS OUT AS FAR AS WHETHER OR NOT THERE IS ANOTHER ELEMENT OF SCORING THERE.

>> SO AS MUCH AS WE CAN BE HELP, I THINK, AT THE CITY LEVEL TO SHARE THAT WITH THE MEMBERS OF THE STATE, I THINK WE NEED TO DO THAT IN ORDER TO BE PROACTIVE.

NEXT -- I THINK THOSE ARE ALL OF MY QUESTIONS NOW.

I BELIEVE WE'RE ON THE RIGHT PATH STILL WHEN IT COMES TO EQUITY BECAUSE DISTRICT 3 AS YOU KNOW WE HAVE A LOT OF -- WE HAD A LOT OF NEED.

BUT WE'RE FINALLY ADDRESSING THIS.

IT'S WHY I BELIEVE IT'S THE RIGHT WAY TO GO IS BECAUSE IT'S ABOUT THE -- ABOUT ONE GIVING QUALITY OF LIFE TO EVERYBODY IN THE NEIGHBORHOOD.

THEY'VE BEEN INVESTING THE TAX DOLLARS FOR SO LONG, THEY DESERVE TO HAVE THE IMPROVEMENTS IN THEIR COMMUNITY.

AND, TWO, IT'S A GREAT OPPORTUNITY FOR ECONOMIC DEVELOPMENT AND GROWTH IN EVERY PART OF TOWN.

THAT'S WHY WE NEED TO CONTINUE TO INVEST IN OUR INFRASTRUCTURE AND OUR SIDEWALKS AND IT'S ALSO A HEALTH AND EQUITY ISSUE TO MAKE SURE THAT THE SIDEWALKS ARE THERE TO GET TO ALL OF THE OTHER PLACES THAT WE NEED TO BE.

SO, I'M VERY -- I'M VERY HAPPY THAT WE'RE CONTINUE BING TO STAY FORWARD WITH OUR EQUITY DEVELOPMENT HERE AND I'M LOOKING FORWARD TO BUILDING MORE SIDEWALKS AND FILLING ALL OF THE SIDEWALK GAPS.

SO, MIKE, YOU DON'T HAVE TO HEAR ME SAY EVERY SINGLE YEAR THAT DISTRICT THREE HAS THE MOST SIDEWALK GAPS OF THE ENTIRE CITY OF SAN ANTONIO, THAT WE CAN FILL THOSE AS MUCH AS WE CAN.

AND FINALLY, JUST TO REMIND EVERYONE BECAUSE OF THE SCHOOL PEDESTRIAN SAFETY AND ALL OF COUNCILMAN GONZALES'S GOOD WORK WITH VISION ZERO AND BEYOND, THE SCHOOL ZONES ARE ACTIVE AND WE NEED TO ALL BE AWARE OF THAT.

THANK YOU.

>> THANK YOU, COUNCILMAN VIAGRAN.

COUNCILMAN BROCKHOUSE?

>> THANK YOU, MAYOR.

THANK YOU, MIKE, THANK YOU, BEN, FOR YOUR PRESENTATION.

MY QUESTION IS FOR THE CITY ATTORNEY? ANDY APPRECIATE IT.

>> AFTERNOON, COUNCILMAN.

>> ANDY, MY POINT IS A CLARIFICATION AND A GROUNDS RULES QUESTION.

>> YES.

>> I UNSCOMING UP HERE AND POINTING OUT FACTS ABOUT POTENTIAL BOND DOWNGRADES, BUT WHAT ARE THE CITY RISKS AND PROCESSES WHEN PRESENTATIONS TURN INTO ELECTIONEERING WHEN YOU'RE LOOKING FOR A VOTE AS THE CITY STAFF VOTE, IS THERE ANY RESEARCH?

>> I'D BE HAPPY TO --

>> I'M JUST --

>> NO, NO, RIGHT.

>>> THERE'S A -- POLITICAL CAMPAIGNS ARE COMING.

THERE'S A FAIRNESS AND EQUITY ON BOTH SIDES AND WE HAVE THINGS THAT ARE POPPING UP THAT YOU START TO BORDERLINE MOVE INTO ELECTIONEERING THAT YOU'RE

[01:55:01]

ADVOCATING IN SUCH A MANNER I'M HEARING TODAY.

>> I'D BE HAPPY TO GO OVER THE GROUND RULES.

>> I'M CURIOUS.

>> THE GROUND RULES ARE THAT WE NEED TO STICK TO FACTS IN TERMS OF WHAT BEN REPORTED AND THE PRESENTATIONS THAT YOU HEARD TODAY.

SO THEY HAD TO BE FACTUA BL.

AND NOT BE ADVOCATING TO THE ELECTORATE TO VOTE YES OR NO ON ANY OF THE MEASURES THAT MAY BE COMING UP IN AN UPCOMING ELECTION.

AND SO AS LONG AS THE DISCUSSION AND THE QUESTIONS STAY FOCUSED ON WHAT THE FACTS ARE, AND FALL SHORT OF ADVOCATING VOTE YES OR VOTE NO, I THINK THAT'S THE -- THAT'S THE GROUND RULES WE NEED TO FOLLOW.

>> FAIR ENOUGH.

SO MY OPINION IS THOSE GROUND RULES WERE VIOLATED TODAY, THERE WAS A CLEAR DELINEATION TO VOTE NO.

IT WAS MENTIONED TO VOTE AGAINST THESE THINGS.

I WOULD JUST CAUTION THAT JUST FOR PROTECTING THE CITY INTEREST AND FAIRNESS PERIOD.

>> THERE WAS ONE -- I HEARD THE PRESENTATION, COUNCILMAN.

THERE WAS ONLY ONE AND IT WAS BY ONE OF OUR ADVISORS AND I DID TALK TO HIM AFTERWARDS.

>> EITHER WAY, I WANT TO MAKE SURE ADVOCATING EITHER WAY, FACTS ARE FACTS.

>> THAT'S WHY I'M HERE.

YOU'RE EXACTLY RIGHT, COUNCILMAN.

>> I WANTED TO REITERATE THAT THIS SOUNDS LIKE A PAC CAMPAIGN GOING ON IN HERE.

SO I WOULD BE VERY CONCERNED THAT WE EXPOSE OURSELVES IN NOT GIVING FAIRNESS TO BOTH SIDES OF THE CONVERSATION WHEREVER YOU ARE ON IT IS IRRELEVANT AT THIS POINT.

MAKE SURE THAT THE STAFF UNDERSTANDS AND THE COUNCIL MEMBERS THAT THEY CAN'T ADVOCATE IN THAT MANNER.

>> WE WANT TO STAY WITHIN THE REQUIREMENTS OF THE LAW.

AND, AGAIN, AS LONG AS THE COUNCIL FOCUSES ON THEIR QUESTIONS ON WHAT THE FACTUAL BASIS IS AND WHAT THE PRESENTATION -- AND AS LONG AS THE PRESENTATION FOCUSES ON THE FACTS AND DOESN'T ADVOCATE ONE POSITION OR THE OTHER.

BECAUSE OBVIOUSLY, THERE WILL BE A LOT OF POLICY CONSIDERATIONS, THE ELECTORATE WILL NEED TO WEIGH IN NOVEMBER, AND THIS IS JUST ONE OF THEM.

SO, AGAIN, I APPRECIATE YOUR QUESTION.

>> I AGREE WITH YOU.

WELL WITHIN THE PURVIEW TO HAVE THE FACT-BASED CONVERSATION.

I APPRECIATE THAT.

I DO APPRECIATE BOTH PRESENTATIONS FOR MIKE AND BEN.

I WANTED TO MAKE SURE THERE'S A LEVEL OF FAIRNESS THAT OCCURS IN ANY DEBATE AND THAT WE STICK TO THE RULES THAT WE'RE SUPPOSED TO FOLLOW, YOU KNOW, WHEN WE DO THE BUSINESS OF THE CITY.

>> ABSOLUTELY, COUNCILMAN, THAT'S OUR OBJECTIVE AS WELL.

>> THANK YOU, MAYOR.

>> THANK YOU, COUNCILMAN BROCKHOUSE.

ANDY, COME UP FOR A MINUTE.

I WANT TO MAKE IT ABUNDANTLY CLEAR.

ANY MEMBER OF THE COUNCIL OR ANY STAFF MEMBER VIOLATE ANY OF THE RULES ON ELECTIONEERING TODAY?

>> NOT IN MY OPINION.

I LOOKED AT THE PRESENTATION BEFORE IT WAS PRESENTED.

I DID COUNSEL ON THE STAFF WHAT THE RULES WERE.

AGAIN, THE ONE SLIPUP WAS WITH ONE OF OUR ADVISORS AND I DID TALK TO HIM AFTERWARDS.

THERE SHOULD BE NO ADVOCATING IN TERMS OF VOTING YES OR NO IN ANY OF THE MEASURES THAT MAY BE COMING UP ON THE ELECTION.

>> GREAT, YOU ARE OUR CITY ATTORNEY.

IT'S YOUR OPINION THAT MATTERS.

I APPRECIATE THAT, ANDY.

COUNCILMAN?

>> ANDY, I HAVE A QUESTION.

I'M SO SORRY.

>> I CAN STAY UP HERE AS LONG AS YOU WANT, COUNCIL.

>> THIS IS REALLY SHORT.

THE STATEMENTS THAT WE GOT FROM MOODY'S AND FITCH AND S&P WHEREVER THEY WERE, IT SEEMS TO ME THOSE WERE SORT OF NEUTRAL ON THEIR FACE.

YOU DON'T THINK S&P OR MOODY'S OR FITCH WERE ELECTIONEERING, DO YOU?

>> THEY WERE OPINING ON SOMETHING THAT THEIR AGENCY, AS THE MANAGER SAID IS TAKING A LOOK AT.

AND SO THEY WERE OFFERING THEIR OPINION ON THAT.

AGAIN, THAT IS PROFESSIONAL OPINION THAT THEY GAVE.

IT'S ONE OF, AGAIN, MANY POLICY CONSIDERATIONS THAT THE ELE ELECTORATE WOULD WEIGH.

>> THE QUESTION IS YOU DON'T THINK S&P, MOODY'S, AND FITCH WERE ELECTIONEERING.

>> THANKS.

>> THANK YOU.

COUNCILMAN COURAGE?

>> THANK YOU.

>> I DON'T WANT TO BE ACCUSED OF ELECTION NEARING, BUT I HAVE A FEW QUESTIONS.

BEN, COULD YOU COME UP? I WANT TO REVIEW SOME THINGS YOU HAVE UP HERE.

YOU PROJECTED ON PAGE 24 FINANCIAL IMPACT RATING TO THE CITY SHOULD OUR DEBT RATING GO DOWN.

BASED ON ABOUT $2.5 BILLION OF DEBT THAT HAD BEEN FINANCED OVER THE PREVIOUS TEN YEARS?

>> THAT'S CORRECT.

>> AND WHAT WHEN ARE THE PRETTY MUCH AVERAGE INTEREST RATES OF THAT PREVIOUS TEN YEARS?

>> SALO, MEDIUM, VERY LOW, HIGH?

>> WERE HIGHER PRERECESSION.

DROPPED IN THE RECESSION.

BUT THEY COPT TO BE LOW BUT CONTINUE TO STAY UP AS THE FEDERAL RESERVE BUMPED RATES ON THE SHORT END THAT HAD SOME IMPACT ON THE YIELD CURVE, BUT UH IT'S REALLY FLAT.

BUT A RANGE FROM TEN YEARS AGO? NOT GOING TO TRY TO BALLPARK IT.

[02:00:01]

>> COUNCILMAN, I WOULD SAY THAT THE BEST INDICATOR OF THAT IS IF YOU LOOK AT THE WAY THE COST THE FUNDS THAT EXISTS RIGHT NOW FOR A BOND PORTFOLIO THAT'S BEEN PUT TOGETHER OVER THE LAST, YOU KNOW, 10, 15 YEARS, IT'S ABOUT 2.8% ON THE G.O.S, THE COST IMPLICATION OF THE EFFECT ON THE GENERAL OBLIGATION BOND COSTS GOING FORWARD IS PREDICATED ON CURRENT MARKET INTEREST RATES.

SO, THAT'S A SPREAD BETWEEN A TRIPLE A RATE AND A DOUBLE A THREE RATE IN TODAY'S INTEREST RATE ENVIRONMENT.

IS THAT -- IS THAT -- AS INTEREST RATES MOVE UPWARD, THAT SPREAD WILL ALSO INCREASE.

SO, AS WE ENTER INTO A DIFFERENT INTEREST RATE ENVIRONMENT BECAUSE THE ENTIRE YIELD CURB HAS SHIFTED UPWARD, IT'S REASONABLE TO ASSUME THAT THAT SPREAD IS GOING TO INCREASE AS WELL AND WE'RE PROBABLY BEEN VERY CONSERVATIVE IN THE ESTIMATION OF THAT INTEREST-COST DIFFERENTIAL.

SO THEN YOU WOULD SAY AT THIS CHART THAT WE HAVE BEHIND YOU THAT -- WHERE THE PAYMENT FOR THE INTEREST IN THE FUTURE FOR A SIMILAR SIZE AMOUNT OF DEBT WILL BE SOMEWHERE BETWEEN $17.5 MILLION AND $37.5 MILLION.

SOMEWHERE BETWEEN THERE IS REASONABLE.

OR DO YOU THINK BECAUSE INTEREST RATES WERE GOING UP, IT COULD BE HIGHER THAN THAT.

>> I'M NOT GOING TO GUESS WHAT THE FED WILL DO.

I CAN TELL YOU WHAT THEY SAY THEY'RE GOING TO DO.

IT'S REASONABLE TO ASSUME THAT AS THE YIELD CURB SHIFTS NORTHWARD, THAT SPREADS BETWEEN TRIPLE A AND DOUBLE RATES WILL INCREASE.

SO THAT NUMBER WILL INCREASE PROPORTIONATELY.

>> OKAY.

SO LET'S SAY WE'RE TALKING ABOUT THE MIDPOINT OF THAT.

THAT'S ABOUT $27 MILLION KIND OF IN THE MIDDLE OF THAT NUMBER? SO THAT COULD BE A -- THAT COULD BE A REASONABLE PROJECTION THAT WE MAY BE LOOKING AT OVER THE NEXT TEN YEARS IF WE'RE GOING TO FUND THE SAME TYPE OF DEBT.

>> AND I THINK THE GOOD INDICATION OF THAT AS BEN GOT INTO ON YOUR PERSPECTIVE DEBT PLAN, THE NEXT TWO GENERAL OBLIGATION BOND ELECTIONS ARE ANTICIPATED TO BE IN THE $950 MILLION RANGE.

>> YEAH, I NOTICED THAT ON PAGE 16, THE TOTAL DEBT FROM BOTH OF THOSE PROJECTIONS FOR 2022 AND 2027 ARE REALLY LOOKING CLOSE TO ABOUT $2.5 BILLION.

AND SO REALISTIC TO PROJECT FORWARD WE MAY BE LOOKING AT THE SAME SITUATION WITH THE SAME INTEREST THAT'S PROJECTED HERE OR HIGHER INTEREST FOR THE CITY.

>> I BELIEVE SO.

I ASKED THE CO-FINANCIAL ADVISORS TO GIVE ME PROJECTION AND LOOK AT THE CREDIT SPREADS, I ALSO BELIEVE THESE NUMBERS ARE VERY CONSERVATIVE.

AGAIN, JUST DIRECT ISSUANCE COST DOESN'T TAKE INTO CONSIDERATION ALL OF THE BENEFITS THAT WE TALKED ABOUT.

>> WE RELY ON YOU AND THE PROFESSIONALS TO USE YOUR FORECASTING SKILLS, YOUR OPINIONS TO DETERMINE THIS.

BECAUSE NO ONE REALLY KNOWS UNTIL WE GET THERE.

BUT HAVE TO BASE IT ON SOMETHING WHEN WE TALK ABOUT FUTURE GROWTH, PAYMENTS, THINGS OF THAT NATURE.

I WOULD LIKE TO ASK BECAUSE CPS ENERGY AND SAWS ARE PART OF OUR CITY FUNDING, NOT DIRECTLY THE CITY OF SAN ANTONIO, BUT THERE ARE CHILDREN, SO TO SPEAK.

BECAUSE OF THAT, ARE YOU AWARE OF THE KINDS OF FUNDING THAT THEY FINANCED OVER THE LAST TEN YEARS?

>> I COULDN'T GIVE YOU A NUMBER.

IT'S MORE THAN WHAT WE'VE DONE.

BOTH OF THE UTILITIES ARE UTILITIES.

THEY'LL BE MORE CAPITAL INTENSIVE.

THEIR NUMBERS ARE GOING TO BE MUCH LARGER.

I WANT TO SAY CPS HAS $5.5 MILLION, $6 MILLION OF DEBT OUTSTANDING JUST TO GIVE YOU AN IDEA.

SAWS WAS $3 BILLION, $3.5 BILLION.

SOMEWHERE IN THAT RANGE.

THE PROGRAMS ARE LARGER THAN OURS BECAUSE THEY'RE UTILITIES.

>> SO, THEIR INTEREST RATES, THOUGH, WEREN'T AS GOOD AS OURS BECAUSE WE DIDN'T HAVE THE TRIPLE A RATING THAT WE THE, IS THAT RIGHT?

>> THAT'S CORRECT.

THEY DO HAVE STRONG RATINGS.

SAWS IS ONE NOTCH BELOW TRIPLE A AND THREE OF THE AGENCIES, CPS IS ONE NOTCH BELOW IT TOO AND TWO NOPE NOTCHES BELOW WITH ONE.

SO THEIR BONDS ARE PRICED FAVORABLY AS WELL.

>> I HAD THE OPPORTUNITY TO GO TO A COUPLE OF THE MEETINGS FOR SAWS AND CPS AND HEARD THE DISCUSSION ON THE FUTURE OF CAPITAL IMPROVEMENTS AND THINGS OF THAT NATURE.

WOULD YOU KNOW AND I KNOW OUR CITY MANAGER HAS BEEN TO SOME OF THOSE MEETINGS, DO YOU FEEL IT'S REASONABLE TO EXPECT THAT THEY'RE GOING TO BE DOING THE SAME AMOUNT OF EXPENDITURES AND THE NUMBERS THEY'VE BEEN SPENDING IN THE LAST FIVE YEARS, TEN YEARS, SAWS IS DOING THE VISTA RIDGE PROJECT COSTING A LOT OF MONEY AND I THINK THEY'RE PROJECTING A LARGE RATE INCREASE TO COVER SOME OF THOSE COSTS?

>> THAT'S CORRECT.

SO THE VISTA RIDGE PROJECT, BUYING THE WATER.

NOT AS MUCH CAPITAL INTENSIVE THERE.

BUT WE HAVE THE EPA CONSENT

[02:05:02]

DECREE THAT SAWS MUST MEET SO THERE'S A LOT OF CAPITAL CONSTRUCTION, YOU RECALL, THE CONSENT DECREE WAS ENTERED INTO SEVERAL YEARS AGO.

A LOT OF ASSESSMENT AND CLEANUP OF WASTE WATER LINES EARLY ON.

NOW WE'RE MOVING TO THE CONSTRUCTION PHASES WHEN WE'RE GOING IN AND REMEDIATING A LOT OF THOSE LINES SO I WOULD EXPECT THE CAPITAL PROGRAM TO CONTINUE TO BE VERY LARGE GOING FORWARD.

THEN, OF COURSE, BOTH UTILITIES HAVE A TREMENDOUS AMOUNT OF INFRASTRUCTURE.

THE CPS SERVICE AREA ON THE ELECTRIC SIDE IS SLIGHTLY BIGGER THAN THE COUNTY.

SO YOU'VE GOT A LOT OF INFRASTRUCTURE AND GENERATION PLANTS THAT YOU'VE GOT TO MAINTAIN.

AND THEN SAWS, OF COURSE, HAS A LOT OF WATER, WASTE WATERF, MAIN STORAGE TANKS ALL OVER.

I WOULD EXPECT THEM TO BE LARGE PROGRAMS GOING FORWARD.

>> OF COURSE, WE CAN'T AFFORD TO SPECULATE.

WE NEED TO HAVE AS MUCH INFORMATION AS WE CAN ABOUT WHAT THEY'RE DOING AND WHAT THEY PROJECT TO DO.

BECAUSE WE INTERACT WITH THEM.

WE DO WORK TOGETHER WITH THEM.

THEY BOTH IN A CERTAIN WAY CONTRIBUTE TO OUR INCOME.

SO I'M SURE YOU KEEP PRETTY -- COULD KEEP PRETTY GOOD TRACK OF WHAT THEY'RE DOING.

>> YES, SIR.

>> OKAY.

SO YOU'RE NOT OPINING WHEN YOU TALK ABOUT WHAT YOU THINK THEY'RE GOING TO BE LOOKING AT FOR THEM.

>> NO, SIR.

THEY SHARED THEIR CAPITAL BUDGETS WITH US.

THEY DISCUSS A LOT OF THAT WITH US.

SO, NO, I THINK THAT TO SAY THAT THEY'RE GOING TO HAVE VERY LARGE PROGRAMS GOING FORWARD, I THINK THAT'S A SAFE ASSUMPTION.

>> SO, IS IT REASONABLE TO ASSUME THAT THEY MAY BE FINANCING MAYBE TWICE THE $2.5 BILLION DEBT OVER THE NEXT TEN YEARS THAT WE'VE FINANCED OVER THE LAST TEN YEARS?

>> IT COULD -- IT PROBABLY WOULD BE NORTH OF $2.5 BILLION IF I HAD TO GUESS.

>> SO, WE COULD BE LOOKING AT INTEREST RATES AFFECTING MAYBE $7 BILLION, $8 BILLION WORTH OF FINANCING THAT AFFECTS THE PEOPLE WHO LIVE IN THE CITY OF SAN ANTONIO WHO USE SAWS, WHO USE CPS, AND BENEFIT FROM CITY AMENITIES.

AND AT THE PROJECTION YOU MADE -- WE TOOK THE MIDDLE GRUNDT, $27 MILLION ON $2.5 MILLION.

IF YOU DOUBLED OR TRIP 8D THAT, SHI I THINK FROM WHAT YOU'RE SAYING SOUNDS LIKE A VERY GOOD POSSIBILITY WITH THE GROWTH OF THOSE UTILITIES, WE COULD BE LOOKING AT EXTRA COSTS TO THE PEOPLE WHO LIVE AND USE THOSE SERVICES IN THE CITY OF SAN ANTONIO.

MAYBE $7 5 MILLION OF INTEREST CHARGES OVER AND ABOVE WHAT WE'RE PAYING TODAY.

IS THAT REASONABLE TO THINK THAT THAT IS A POSSIBILITY OF HAPPENING? SHOULD OUR RATE GO DOWN?

>> SIR, I THINK THAT YOU WOULD SEE INTEREST.

THESE ARE CONSERVATIVE ASSUMPTIONS ABOUT OUR DEBT.

CPS AND SAWS WILL HAVE LARGE PROGRAMS GOING FORWARD.

IF WE'RE DOWNGRADED, THEY ARE DOWNGRADED.

YOU'LL SEE THE COMMUNITY PAYING MORE IN INTEREST COSTS WHETHER YOU TALK ABOUT THE PROPERTY TAX DOLLAR COMING IN OR THE CPS RATE DOLLAR GOING IN FOR THE CPS OR THE RATE DOLLAR GOING TO SAWS.

DOWNGRADED, MORE OF THE DOLLARS GO TO INTEREST COSTS AND LESS TO PROJECTS.

>> RIGHT.

>> ON THE UTILITY SIDE, IF THEY'RE REMEDIATING THE CONSENT DECREE AND REPLACING PROJECTS, THAT TRANSLATES IF YOU HAVE TO MAKE THE SAME LEVEL OF PROJECTS, YOU HAVE TO MAKE THE ASSUMPTION.

>> SO IF THEY HAD TO PAY A HIGHER INTEREST RATE AT SAWS OR CPS, IT WOULD PROBABLY MEAN THEY CUT SERVICES, WHICH IS NOT VERY LIKELY.

THEY'RE NOT GOING TO REDUCE WATER OR REDUCE ENERGY.

MEANS THEY HAVE TO RAISE RATES TO MAKE UP THE DIFFERENCE IF THEY'RE GOING TO PAY MORE IN INTEREST.

THAT SOUNDS LOGICAL, RIGHT?

>> I THINK THEY WOULD HAVE TO ASSESS THAT SITUATION AT THAT POINT IN TIME WHAT THEY WOULD RECOMMEND COMING FORWARD TO US.

BUT TO PUT PRESSURE ON THE RATES.

YOU'VE SEEN THE PROJECTED RATE FORECAST FOR SAWS AND WE DID THAT LAST FALL.

THAT THEY'VE GOT FUTURE RATE INCREASES BUILT IN.

CPS DIDN'T COME FORWARD WITH ONE EARLIER THIS YEAR.

MADE A DECISION TO HOLD OFF ON ONE.

BUT I SUSPECT THAT THERE'S CONTINUING PRESSURE THERE AND, YOU KNOW, THEY'RE CONTINUING TO EVALUATE AS THEY ALWAYS DO.

>> SEE, I'M JUST TRYING TO GET AHOLD OF THIS SO WHEN I GO BACK AND TALK TO THE PEOPLE OF MY DISTRICT, I CAN HELP THEM UNDERSTAND THE POTENTIAL.

FROM WHAT I'M READING, THE POTENTIAL FOR THE ADDITIONAL COSTS TO THE CITIZENS OF SAN ANTONIO IS MULTI- MULTIMILLIONS OF DOLLARS IN THE NEXT TEN YEARS, SHOULD OUR RATING BE DOWNGRADED FOR ANY PURPOSE.

I THINK PEOPLE UNDERSTAND THAT.

IF YOU JUST TAKE, FOR EXAMPLE, THE NUMBERS THAT I'M PROJECTING, I ADD IT'S A PROJECTION BASED ON REASONABLE ASSUMPTIONS, $75 BILLION OR MORE INTEREST.

YOU KNOW THAT? IF YOU DIVIDE THAT UP BY TEN CITY COUNCIL DISTRICTS, THAT'S $7.5 MILLION OF INTEREST THAT PEOPLE IN MY DISTRICT ARE GOING

[02:10:01]

TO BE RESPONSIBLE FOR PAYING WHETHER IT'S FOR THE CITY, SAWS, CPS, OR THAT $7.5 MILLION LESS IN SERVICES THAT ARE GOING TO BE PROVIDED OVER THE NEXT TEN YEARS.

BECAUSE WE'VE DECIDED WE CAN'T AFFORD TO PAY THAT MUCH OH FOR THOSE SERVICES.

AND THAT'S -- THAT MEANS JOBS.

AND THAT MEANS MONEY GETS SPENT IN BUSINESSES, IN MY DISTRICT AND ALL OF THE DISTRICTS.

SO, I JUST WANTED TO KIND OF TOUCH BASE WITH YOU ON THOSE FIGURES TO HAVE AN IDEA OF HOW TO EXPLAIN THE SITUATION RESPO RESPONSIBLY.

I DON'T WANT TO SCARE ANYBODY.

BUT I WANT PEOPLE TO UNDERSTAND WHAT THEY NEED TO CONSIDER.

ON THESE ISSUES.

THAT'S ALL MAYOR, I APPRECIATE THE TIME.

THANK YOU.

>> THANK YOU, COUNCILMAN COURAGE.

COUNCILWOMAN GONZALES?

>> THANK YOU.

THANK YOU FOR YOUR PRESENTATIONS.

I'LL START WITH YOUR QUESTIONS ON CAPITAL IMPROVEMENTS.

I WOULD LIKE TO SEE US INVEST MORE IN STREET MAINTENANCE AND ALSO IN THE EQUITY BUDGET.

BUT I'M CONCERNED WE'RE STILL NOT FACING THE MOST DANGEROUS STREETS IN OUR CITIES GIVEN THE RECENT FATALITFATALITIES.

THERE'S A DESIRE TO HAVE EQUITY AND ROUGH PROPORTIONALTY.

BUT WE KNOW A COUPLE OF STREETS IN OUR DISTRICT AND IN OUR CITY CONTRIBUTING TO A LOT OF DEATHS.

CULEBRA RUNS FROM DISTRICT 1, PART OF DISTRICT 5, 6, AND 7.

WE HAVE A LOT OF FATALITIES IN THERE, WHY ARE WE NOT PUTTING MONEY TO THE STREETS THAT ARE DANGEROUS?

>> CULEBRA, BECAUSE IT'S MILES AND MILES LONG.

WE HAVE HAD A NUMBER OF FATALITIES ACROSS THAT CORRIDOR.

WE'VE DONE SOME PROJECTS OUT THERE.

TX-DOT HAS DONE SOME PROJECTS TO GET THE Z CROSSINGS, GOOD PROPER PLACES, NEW SIGNALS AND SO FORTH IN THERE.

WE NEED TO CONTINUES TO FUND THEM.

>> IT'S MINIMAL COMPARED TO THE NUMBER OF FATALITFATALITIES.

I FEEL LIKE WE SPENT $1 MILLION DOING IMPROVEMENTS ON CULEBRA.

MAYBE A LITTLE MORE.

BUT MANY MILES OF STREET.

IT'S TEN MILES FROM I-10 TO 1604.

MAYBE THAT'S A LITTLE TOO LONG.

AND I'M NOT FAMILIAR WITH HOW MANY FATALITIES ARE HAPPENING AT 1604 AND OUTSIDE OF THAT AREA.

BUT, THERE SEEMS TO ME THAT WE PUT PENNIES ON THE STREETS THAT ARE MOST DANGEROUS.

AND MOST OF THEM ARE IN STREETS THAT CROSS MULTIPLE DISTRICTS BECAUSE THERE ARE ARTERIAL STREETS.

BECAUSE IT CUTS FROM DISTRICT 1, 7, AND 5.

DISTRICT 4 WEIGH OUT TO THE SOUTH.

SO I DON'T KNOW IF THE COUNCILMAN HAS HAD A LOT OF FATALITIES THE FURTHER OUT YOU GO.

I KNOW THE HIGHER THE POTENTIAL FOR FATALITY RATES.

SO I WOULD LIKE TO SEE US DEDICATE MONEY ON THE STREETS SO WE KNOW THAT IT'S AUSTIN HIGHWAY, CULEBRA, FREDERICKSBURG.

AND YOU KNOW SOME OF THOSE -- GENERAL MCMULLEN IS ONE WE HAD A LOT OF FATALITIES.

I THINK ON THE EAST SIDE, MOST FATALITIES ON THE EAST SIDE,S HISTORICALLY, THAT'S THE CASE.

WHY ARE WE NOT DEDICATING MONEY TOWARDS THOSE.

WE HAVE SOME OF THE INITIATIVE.

WE HAVE $100 MILLION TOWARDS VISION ZERO IMPLEMENTATIONS AROUND THE CITY.

BUT I WOULD LIKE TO SEE THAT AS A PRIORITY MOVING FORWARD.

IT JUST SEEMS LIKE IT'S TIME TO DO THAT.

>> THAT'S A GOOD POINT.

THE CORRIDORS YOU MENTIONED ARE A LOT OF THE TX-DOT TURNBACK STREETS.

WE WANT TO HAVE THOSE ON THE CITY STREETS.

WE DON'T WANT THREE LANES OF TRAFFIC IN EACH DIRECTION THAT PEDESTRIANS ARE TRYING TO MANEUVER.

WE LOOK AT THE SHORT TERM IMPROVEMENT.

WE NEED THE BIGGER PROJECTS AS WELL TO CONVERT THOSE.

AND TX-DOT HAS BEEN CONTRIBUTING DOLLARS TO CORRIDORS, CONVERT IT TO THE COMPLETE STREET WE SEE OUT THERE.

WE DON'T NEED SEVEN LANE OR MATERIALS BEFORE THE CITY.

THOSE WERE THE HIGHWAYS BEFORE THE HIGHWAYS, WE NEED TO TAKE THE MAJOR ARTERIALS TO COMPLETE STREETS.

THEY'RE BIG PROJECTS.

>> THEY'RE PART OF THE MOBILITY THAT SA TOMORROW MOBILITY PROGRAM, TRANSPORTATION PROGRAMS. 1% OF THE STREETS, MOST OF THEM

[02:15:01]

ARE GOING TO TOUCH OUR DISTRICTS IN ONE WAY OR THE OTHER.

SO I WOULD RECOMMEND THOSE CHANGES WITH OUR CAPITAL CAMPAIGN OR WITH OUR BUDGET THIS YEAR.

AND I THINK THAT'S ALL OF THE QUESTIONS I HAVE FOR YOU, MIKE.

AND I'LL JUST MOVE TO SOME QUESTIONS FOR -- FOR BEN.

BEN, THE BUDGET.

YOU KNOW, THESE ARE HUGE BUDGETS AND HUGE NUMBERS AND I AM PROUD OF SAN ANTONIO FOR BEING ABLE TO SUSTAIN THIS TYPE OF GROWTH AND INVESTMENT.

WHY DON'T WE SHOW WHEN WE'RE DOING OUR BUDGET WHAT THE ACTUAL NEED IS VERSUS WHAT WE SPEND ON OUR BUDGET.

AND THIS IS, YOU KNOW, A POINT I'VE BEEN TRYING TO MAKE SORT OF OVER AND OVER AGAIN AS WE TALK ABOUT THE DRAINAGE FOR THE NEED FOR FACILITIES AND STREET MAINTENANCE.

I KNOW FEED TO PRESENT A BALANCED BUDGET.

I THINK WE DO A GOOD JOB WITH THE AMOUNT OF MONEY WE HAVE.

WE NEED TO CHANGE CITY FORUM.

WE CAN'T SUSTAIN OURSELVES WITH THE REALLY WIDE STREETS.

BUT WE DON'T EVER SHOW THAT.

WE SHOW ONLY WHAT -- ONLY WHAT WE CAN AFFORD.

WE DON'T ACTUALLY SHOW THE NEED.

AND WHY DON'T WE DO THAT WHEN WE PRESENT THE BUDGET?

>> I GUESS FROM MY PERSPECTIVE WHEN I'M PRESENTING THE DEBT PLAN TO YOU AND TALKING ABOUT HOW WE'RE GOING TO FUND THINGS, I'M TRYING TO LAY OUT WHAT OUR CAPACITY IS AND WHAT WE CAN EFFECTIVELY MANAGE FROM A DEBT PERSPECTIVE AND HOW WE CAN FINANCE SOME OF THE PROJECTS.

I KNOW MIKE AND TEAM SPEND A LOT OF TIME TRYING TO ADDRESS THE NEED AND LOOK AT WHAT ARE AND ASSESS AND PRIORITIZE WHAT OUR NEEDS ARE.

THAT'S WHAT WE TRY TO BRING FORWARD TO YOU.

BUT FROM MY STANDPOINT, WHEN I'M LOOKING AT THE BOND PROGRAM, I'M LOOKING AT WHAT CAN WE AFFORD AND DELIVER ON?

>> HOW WOULD THAT IMPACT THE TRIPLE A BOND RATING.

BECAUSE I KNOW THAT YOU -- THERE'S A -- WHAT WAS PRESENTED HERE ABOUT THE IMPACT OF THE PROPOSE SALES MIGHT BE, THE REFERENDUM MIGHT BE.

THERE'S REALLY NO -- NOTHING THAT SHOWS WHAT IS THE IMPACT OF -- OF -- CONTINUING TO BE ON THIS PATH WHERE WE'RE CURRENTLY NOT COVERING ALL OF OUR EXPENSES.

IS THAT EVER CONSIDERED IN OUR BOND RATING?

>> YES, THAT'S PART OF WHAT WE'RE LOOKING AT.

PART OF IT IS -- IF I CAN FIND THIS SLIDE.

SO THIS PROGRAM GETS UPDATED EVERY YEAR IN TERMS OF WHAT WE THINK CAPACITY IS.

ONE OF THE FUNDAMENTAL ASSUMPTIONS THAT WE MAKE IN THE DEBT PLAN IS WE'RE NOT GOING TO INCREASE THE DEBT SERVICE TAX RATE.

WE'VE NOT INCREASED IT SINCE 2004.

21 CENTS.

THE VALUE GOES UP AND DOWN DEPENDING ON WHAT THE ECONOMY IS DOING.

WE ARE ALONG WITH ALL OF THE ASSUMPTIONS WE MENTIONED, WE'RE SIZING FUTURE PROGRAMS.

>> IF I CAN ADD TO THAT.

ONE OF THE REASONS WE HAVE A TRIPLE A BOND RATING IS BECAUSE OF THIS CHART.

WE'RE -- WE PLAYED CATCHUP FOR THE PAST TEN YEARS AND THEY RECOGNIZE THAT WE'RE BEGINNING OVER THE PAST DECADE TO ADDRESS THE BACKLOG OF STREET CONSTRUCTION FOR THE COMMUNITY.

YOU CAN SEE HERE, ONLY $350 MILLION IN GEO DEBT ISSUED FOR THE 15 YEARS PRIOR TO 2005.

SINCE THEN, $2 BILLION APPROVED BY THE VOTERS.

SO, WITH MORE THAN 4,000 MILES OF STREETS, UNLESS THE COUNCIL IS WILLING TO INCREASE THE PROPERTY TAX RATE, WE CANNOT ADDRESS ALL OF THE NEEDS OF THE COMMUNITY.

BUT WE'RE MAKING PROGRESS AND THEY RECOGNIZE THAT AND WE'RE DOING IT WITHIN OUR FINANCIAL MEANS.

>> AND SO I THINK THAT'S -- RIGHT, I MEAN, WE DO SEE THIS HUGE INCREASE WHICH WAS CLEARLY VERY MUCH NEEDED.

BUT I DO HOPE THAT IT ALSO, AS WE ARE MAKING OTHER DECISIONS, ESPECIALLY LONG TERM, WHAT WE EXPECT TO BE LONG TERM DELE CIGSES FOR OUR CITY, WE -- DECISIONS FOR OUR CITY, WE TAKE INTO ACCOUNT WE STILL HAVE MANY OBLIGATIONS THAT ARE NOT CURRENTLY BEING MET.

SO AS WE MAKE DECISIONS ABOUT HOW WE INVEST THE TAXPAYERS' DOLLARS THAT WE CONSIDER CITY FORUM AND CONSIDER THAT WE -- AND SO NOT ONLY ARE WE -- IS OUR CITY GROWING BY POPULATION, BUT THAT WE DON'T CONTINUE TO GROW BEYOND OUR PHYSICAL FOOTPRINT.

BECAUSE THAT'S WHERE MANY OF OUR EXPENSES ARE AND -- AND TAKING ON ADDITIONAL STREETS.

SO THAT WE DON'T CONTINUE TO INVEST IN WIDER STREETS, THAT WE DON'T CONTINUE TO INVEST IN AREAS OUTSIDE OF OUR -- MORE SUBURBAN AREAS THAT WE DO OUR INVESTMENT PRIMARILY IN AN URBAN FOOTPRINT BECAUSE IT'S MORE SUSTAINABLE FOR THE LONG TERM.

[02:20:01]

SO, ONE OF THESE DAYS I WOULD LIKE TO SEE WHAT ALL OF THAT LOOKS LIKE.

WHAT THE FULL EXTENT OF OUR OBLIGATIONS REALLY LOOKS LIKE VERSUS WHAT WE CAN AFFORD TO INVEST IN.

SO, I KNOW WE DO VERY WELL WITH WHAT WE HAVE.

BUT I THINK ALL OF THESE ARE IMPORTANT THINGS TO CONSIDER AS WE'RE GOING TO THE PUBLIC ASKING THEM TO CONTINUE TO INVEST IN OUR CITY THAT THEY CONSIDER WHAT SOME OF THESE AMENDMENTS AND PROPOSALS MIGHT DO TO OUR ABILITY TO MAINTAIN SERVICES.

>> CERTAINLY, WHEN WE PUT THE BOND PROGRAMS TOGETHER AND THE 2022 AND 2027 ARE JUST PROJECTIONS BASED ON WHERE WE ARE AT TODAY.

BUT I THINK THE ENTIRE TEAM ON THE FINANCE SIDE, WE UNDERSTAND THERE ARE MANY NEEDS IN THE COMMUNITY, TREMENDOUS NEEDS IN THE COMMUNITY.

SO WE CONTINUE TO TRY TO BUILD AS MUCH CAPACITY AS WE CAN STAYING TRUE TO THOSE FUNDAMENTAL PRINCIPALS THAT ALLOW US TO MAINTAIN A HIGH RATING, GET A LOWER COST OF BORROWING, PUT MORE DOLLARS OF PRODUCTION AND MORE DOLLARS TO PROJECTS, WE CONTINUE TO DO THAT.

AGAIN, WE UPDATE THIS THING ONCE A YEAR, SOMETIMES MORE THAN ONCE A YEAR, DEPENDING ON WHAT'S GOING ON WITH THE ECONOMY.

AND, AGAIN, WE'LL LOOK TO PUT AS MUCH AS WE CAN IN THESE PROGRAMS TO ADDRESS AS MUCH AS WE CAN.

>> NIRENBERG: THANK YOU, COUNCILMAN GONZALES.

COUNCILMAN TREVINO?

>> TREVINO: THANK YOU, MAYOR.

MIKE? FIRST, I WANT TO ACKNOWLEDGE THAT, YOU KNOW, TCI HAS AN IMMENSE, IMMENSE WORKLOAD, AND I WANT TO ACKNOWLEDGE THAT I THINK THAT WHERE WE ARE NOW AS A CITY, I WANT TO GET YOUR THOUGHTS ON THIS, AS YOU JUST PREVIOUSLY STATED, YOU TALKED ABOUT HOW SOME OF THE ROADS WERE ONCE HIGHWAYS, YOU HAVE THE SHIFT, RIGHT, AND HOW A CITY GROWS OVER TIME, TALK TO US ABOUT HOW WE'RE LOOKING AT A CITY THAT IS GETTING AWAY FROM ITS FOCUS ON CARS, AND MORE FOCUSED ON PEOPLE, AND HOW WE'RE MANAGING THAT.

>> YEAH, DEFINITELY, COUNCILMAN, SO THAT'S OUR SA TOMORROW MULTI-MODAL PLAN IS ALL ABOUT THAT, HOW DO YOU MOVE PEOPLE, NOT JUST CARS, HISTORICALLY, YOU KNOW, SAN ANTONIO HAS BEEN DESIGNED AROUND THE VEHICLES, LIKE A LOT OF WESTERN CITIES HAVE, AND SO A LOT OF IT IS RETROFIT NOW, COME BACK AND LOOKING AT THE SPACE THAT YOU HAVE AND REALLOCATING IT WITH PROJECTS, AND GIVING MORE SPACE FOR PEDESTRIANS, DEDICATED SPACE FOR CYCLISTS, THAT IS OUR DEFAULT, WE HAVE A BICYCLE MASTER PLAN.

OUR DEFAULT IS WE'RE LOOKING FOR DEDICATED SPACE FOR CYCLISTS, HIKE AND BIKE TRAIL, CYCLE TRACK THAT IS SEPARATED FROM TRAVEL LANE IF AT ALL POSSIBLE.

>> TREVINO: WOULD YOU SAY THERE'S A LOT OF OPPORTUNITY MOVING FORWARD, BECAUSE AS WE'RE SHIFTING THAT FOCUS, THERE'S A LOT OF OPPORTUNITIES FOR EVERYTHING OUTSIDE OF THE AUTOMOBILE?

>> YEAH, NO QUESTION, THERE'S A LOT OF OPPORTUNITY.

IN SOME CASES, IT'S REALLY TIGHT, YOU HAVE CONSTRAINTS, SO IF YOU'RE GOING TO PROVIDE FOR EVERYTHING THERE THE WAY YOU WANT TO, THE RIGHT OF WAY SOMETIMES COMES INTO PLAY, BUT IN OTHER CASES, WE HAVE PLENTY OF ROOM, I THINK MAIN AND SOLEDAD IS A GOOD EXAMPLE, WE HAD A ONE-WAY COUPLET STREET IN A HEAVY COMMERCIAL AREA DOWNTOWN ACTIVITY, YOU KNOW, THROUGH THE BOND PROCESS, CONVERTED THOSE TO TWO-WAY STREETS, DEDICATED BIKE SPACE, MUCH MORE PEDESTRIAN SPACE, MUCH BETTER.

>> TREVINO: AND I WANT TO SAY A LOT OF PEOPLE REALLY LIKE THAT.

THEY REALLY COMPLIMENTED THAT PROJECT.

OF COURSE, WHEN IT WAS GOING ON, THEY CERTAINLY DIDN'T LIKE THE CONSTRUCTION PERIOD, BUT I WILL SAY THAT, YOU KNOW, THAT CHANGE HAS MADE A GREAT IMPACT TO THOSE FOLKS THAT ARE USING IT, AND THEY HAVE -- THEY HAVE REALLY BEEN VERY OUTSPOKEN ABOUT THE WAY IT'S BEEN LAID OUT AND HOW ACTIVE THAT STREET IS NOW.

SO JUST WANT TO SAY THANK YOU TO YOUR TEAM, TO REALLY BE FOCUSING ON, YOU KNOW, MULTI-MODAL, AND UNDERSTANDING THAT MOVING PEOPLE IS IMPORTANT, WHETHER THEY'RE ON BIKES OR ON SIDEWALK, OR EVEN IN THEIR CARS, WE JUST WANT TO MAKE SPACE FOR ALL OF IT.

I THINK THERE'S A LOT OF OPPORTUNITY THERE, SO I ALSO WANT TO THANK SHERYL FOR ADDRESSING THE PEDESTRIAN MOBILITY OFFICER, I THINK THAT IS GOING TO BE A REALLY BIG SEA CHANGE FOR THE CITY.

I LOOK FORWARD TO WORKING WITH THE PMO MOVING FORWARD.

THANK YOU, MIKE.

THANK YOU, MAYOR.

>> NIRENBERG: THANK YOU, COUNCILMAN TREVINO.

COUNCILMAN SALDAÑA?

>> SALDANA: THANK YOU, MAYOR.

MIKE, I SENT A TEXT MESSAGE OVER TO MY STAFF AND SAID I'M GOING TO CHIME IN, IF YOU WANT TO SHOUT OUT TO ANY TCI MEMBER, THIS IS THE TIME TO DO IT, SO I GOT FLOODED BY MY STAFF, WITH A NUMBER OF NAMES THAT I THINK ARE IMPORTANT TO MENTION, SO I'LL START WITH FRANK NEWBERRY,

[02:25:02]

KATHLEEN BUCKALOO, WHO I'VE GOTTEN TO WORK WITH ON SEVERAL OCCASIONS, ART RINEHART, JEANETTE MORIN, VICTORIA ESCOBEDO, AND ROZY IS ALWAYS SWEET AND HELPFUL SAYS ONE OF MY STAFF MEMBER.

>> SALDANA: THAT IS ONE WORD I HAVEN'T USED FOR RAZY.

>> AND LINCOLN AVANT TOO MADE THE CUT.

THERE'S A NUMBER OF YOUR STAFF WHO DOES SUCH A GREAT JOB OF DOING THE WORK THAT THEY DO, THAT REALLY MAKES THIS A SIMPLE PRESENTATION OF THE NUTS AND BOLTS OF WHAT CITIES ARE MEANT TO DO, WHICH IS TO BUILD, REPAIR, REHABILITATE THEIR CITIES, THEIR STREETS, THEIR SIDEWALKS AND IT'S NOT CONTROVERSIAL, WHICH MEANS IT'S NOT GOING TO BE ON THE FRONT PAGE IN THE NEW BRAUNFELS.

-- NEWSPAPER .

YOU'RE NOT GOING TO GET BREAKING NEWS, THE CITY OF SAN ANTONIO IS SPENDING $110 MILLION OF YOUR HARD EARNED TAXPAYER DOLLARS ON YOUR STREETS AND SIDEWALKS, SO WE HAVE TO BE COGNIZANT OF THE FACT WHAT YOU ALL GET TO DO, YOU DO IN A WAY THAT IS PROFESSIONAL.

A LOT OF THESE INDIVIDUALS THAT I'VE MENTIONED ARE FOLKS WHO WITH THEIR WORK AND THE PROJECT MANAGERS THAT ARE AT EACH ONE OF THE STREETS IN THE PROJECT HAVE REALLY DONE A TREMENDOUS JOB WITH THE SEVERAL YEARS THAT I'VE SERVED IN GETTING FEEDBACK THAT COMES BACK TO ME, THROUGH MY RESIDENTS WHO SAY THAT THE PROJECT MANAGER MADE SURE HE WAS WALKING AND PUTTING A NOTICE ON EVERYBODY'S DOOR, AND EVERYBODY KNEW THIS WAS A PROJECT THAT WAS COMING.

WE WERE TOLD TO MOVE OUR CARS AWAY FROM THE STREETS, BECAUSE THEY WERE BUILDING SIDEWALKS, SO I THINK WE'VE REALLY EVOLVED IN THE WAY THAT WE'VE COMMUNICATED TO OUR COMMUNITY MEMBERS, BECAUSE WHILE THEY MAY NOT SEE THEIR STREET PROJECT BEING COVERED ON THE NEWS, OR IN THE NEWSPAPER THE NEXT DAY, IT CERTAINLY IS LIFE-CHANGING FOR THEM, AND SO I WANTED TO SAY THANK YOU TO YOU AND YOUR STAFF FOR ALWAYS MAKING THIS SUCH AN EASY PRESENTATION, WE TALK ABOUT STREETS AND SIDEWALKS, OFTEN OVERLOOKED, BUT MANY WAYS ALWAYS PUNCHES -- ALWAYS PACK AS PUNCH WITH REGARD TO IMPACT IN OUR COMMUNITY, SO MIKE, NO OTHER COMMENTS OR QUESTIONS, OTHER THAN TO GIVE YOU ALL SOME POSITIVE FEEDBACK, WE APPRECIATE THE WORK YOUR STAFF DOES EVERY DAY.

>> THANK YOU, COUNCILMAN.

>> SALDANA: THANK YOU, MAYOR.

>> NIRENBERG: THANK YOU, COUNCILMAN SALDAÑA, COUNCILMAN TREVINO.

>> TREVINO: SO I WANT TO JUST TAKE THIS OPPORTUNITY TO EMBARRASS SOMEBODY REALLY -- NOT MANNY.

ANDREW TREXLER, HE WORKED IN MY OFFICE FOR A COUPLE OF YEARS, AND THEN WENT ON TO GO WORK AT TCI, AND HE'S LEAVING THIS WEEK, I BELIEVE FRIDAY, TO BEGIN HIS GRADUATE WORK OVER AT DUKE UNIVERSITY.

YOU KNOW, HE -- HE WAS A VERY, VERY SPECIAL -- HE IS A VERY SPECIAL PERSON AND CONTRIBUTED IN MANY WAYS BOTH ON THE COUNCIL SIDE AND OF COURSE AT TCI, AND JUST WANT TO WISH HIM -- WISH HIM WELL.

WE ALL CALLED HIM T REX BECAUSE HE WAS QUITE A MONSTER, AND HE REALLY, REALLY WORKED HARD, AND I CAN GUARANTEE HE'S PRETTY EMBARRASSED RIGHT NOW THAT I'M MENTIONING HIM, BUT I WANT TO WISH HIM WELL PUBLICLY.

HE IS QUITE A SPECIAL PERSON AND REALLY HELPED CHANGE THE CITY FOR THE BETTER.

THANK YOU, MAYOR.

>> NIRENBERG: THANK YOU, COUNCILMAN TREVINO.

COUNCILMAN PERRY?

>> PERRY: THANK YOU, SIR.

MIKE, I'VE GOT A COUPLE OF QUESTIONS HERE, THANK YOU VERY MUCH, MIKE, BEN, FOR PUTTING THEN PRESENTATIONS TOGETHER.

AROUND SLIDE 19, THAT'S WHERE YOU'RE -- YOU'RE TALKING ABOUT -- NO, THAT WASN'T IT.

I LOST MY PLACE.

BUT IT KIND OF GOES INTO THIS ALSO, LIKE THIS SLIDE HERE, IT SHOWS WHAT -- YOU KNOW, WHERE THE POINT STRUCTURES ARE, THE SCORE, THE GAP MILES AND THE PRIORITY, THAT'S ALL GREAT, BUT WHERE ARE THESE ACTUALLY GOING TO BE? WHERE ARE THE RESOURCES GOING TO BE ALLOCATED TO, WHICH DISTRICTS? DO YOU HAVE ANY KIND OF SLIDE THAT SHOWS THAT FOR THE SIDEWALK, THE STREETS, YOU KNOW, THE BIKE PATHS, YOU KNOW, WHERE ARE THEY ACTUALLY GOING?

>> SO THE BIKE PATHS WILL BE GOING THROUGH, YOU KNOW, WITH THE NEW PROGRAM, AND THOSE WILL BE THROUGHOUT THE CITY, BUT WE'LL IDENTIFY THOSE PROJECTS.

WE DO HAVE THE ALLOCATIONS FOR -- FOR STREETS, YOU KNOW, THE ADDITIONAL 11 MILLION, BASED ON, AGAIN, THE PERCENTAGE OF C AND D STREETS WITHIN THAT AREA.

I DON'T KNOW IF THAT IS A BACKUP SLIDE THAT WE HAVE? I'VE GOT IT IN FRONT OF ME HERE AS WELL.

>> PERRY: I CERTAINLY WANT TO SEE THAT ON ALL OF THE

[02:30:01]

INFRASTRUCTURE PORTIONS OF THE BUDGET, WHERE ARE THEY GOING AND WHAT -- WHAT PROJECTS --

>> SO LET ME TELL YOU THE RANGE, AND IF WE HAVE A VISUAL, WE'LL PULL IT UP HERE.

SO THE RANGE FOR THE 11 MILLION -- AGAIN, THIS IS PURELY BASED ON PERCENTAGE OF C AND D STREETS.

YOU'VE GOT IT UP HERE SO --

>> PERRY: OKAY.

PERFECT.

>> THE 11 MILLION RANGES FROM ABOUT 1.4 MILLION IN DISTRICT 5 TO ABOUT 700,000 IN DISTRICT 9, SO THAT'S THE RANGE IN BETWEEN, BASED ON THAT PERIMETER OF LOOP 410, A LITTLE BIT MORE IN 8 AND 9, THE PERCENTAGE OF C AND D STREETS IN THOSE AREAS.

>> SCULLEY: IF I COULD ADD, MIKE, THE FIVE YEAR IMP, THE IMPROVEMENT, THE INFRASTRUCTURE MANAGEMENT PROGRAM LISTS ALL THE STREETS IN ALL COUNCIL DISTRICTS, SEVERAL HUNDRED PROJECTS, AND THE COUNCIL ADOPTS THAT AS PART OF THE BUDGET EACH YEAR, SO THAT IS ALSO A PART OF THE BUDGET DOCUMENT.

WE CAN REVIEW WAS THE DISTRICT TEN PROJECTS.

>> OKAY, GREAT.

>> YOU CAN SEE HERE ON THE CHART, THE 99 MILLION DISTRIBUTION, THAT BUDGET ON THE STREETS, AT 13 AND A HALF MILLION IN DISTRICT 10, ANOTHER 1 MILLION OUT OF THE ADDITIONAL FUNDS, DISTRIBUTION FOR A TOTAL OF 14.6 MILLION.

>> GREAT.

THAT'S -- IF I COULD SEE THAT FOR EACH ONE OF THEM STREETS, SIDEWALKS, BIKE --

>> WE COULD DO THAT AS A FOLLOW-UP, SURE.

>> PERRY: THAT WOULD BE GREAT.

APPRECIATE THAT.

AND A QUESTION ABOUT OUR APP, THAT SAFEST DRIVER APP, I THINK I ASKED YOU THAT QUESTION, WHAT HAPPENS TO THIS APP AFTER THE COMPETITION? DOES IT JUST GO AWAY?

>> YES.

>> PERRY: DOES IT -- CAN WE -- I MEAN CAN WE SEE ABOUT KEEPING IT TO, YOU KNOW, TO, I DON'T KNOW, THE WINNER GETS A DAY WITH THE MAYOR OR SOMETHING LIKE THAT? YOU KNOW, TO KEEP THIS APP GOING, BECAUSE I THINK IT -- I THINK WE -- IT'S VERY IMPORTANT AND COUNCILMAN COURAGE AND I ACTUALLY SPENT SOME TIME WITH A GROUP OUT OF THE JOHNSON HIGH SCHOOL THAT IS PROMOTING DRIVER SAFETY FOR STUDENTS, AND WE TOLD THEM ABOUT THIS APP, AND THEY WERE -- THEY WERE REALLY INTERESTED IN IT, BUT IT'S ALREADY HALFWAY THROUGH OR MOST OF THE WAY THROUGH THE CONTEST, SO CAN WE KEEP THIS APP GOING AND LOOK AT OTHER THINGS THAT WE COULD GIVE AWAY, POSSIBLY, TO KEEP THE INTEREST UP IN IT?

>> YEAH, COUNCILMAN, SO WE'RE GETTING A LOT OF DATA THROUGH THIS SEVERAL-MONTH PROCESS OF THIS APP AND GETTING A LOT OF INTEREST OUT THERE AS WELL, WHICH IS GREAT.

SO WE WANT TO STUDY THAT DATA AND SEE WHAT DO WE DO NEXT AND WHAT'S THE TIMING OF THAT? YOU'RE RIGHT, IT WOULD BE RIGHT FOR ANOTHER CONTEST OF SOME KIND, BUT LET'S SHAPE WHAT WE LEARN ABOUT IT, WHAT WAS GOOD, WHAT DIDN'T WORK AS WELL, AND LET'S SHAPE ANOTHER ONE AFTER THE FACT.

>> PERRY: OKAY.

I WANTED TO MAKE SURE WE WEREN'T JUST JETTISONING THAT APP.

GREAT.

THE FIBER OPTICS, OR THE FIBER INSTALLATION SLIDE, SLIDE 30 I THINK IT IS, NOW, THAT'S A LOT OF PERMITS BEING ISSUED IN THE MILES, PARTICULARLY AT&T.

I DIDN'T UNDERSTAND -- I DIDN'T REALIZE IT WAS OVER 3,000 THEY'VE ALREADY PUT IN, BUT, AGAIN, WHERE -- WHERE ARE THESE BEING DEPLOYED AT? WHERE IN THE CITY? AND ARE WE HAVING MULTIPLE CUSTOMERS CHASE THE SAME -- MULTIPLE COMPANIES CHASE THE SAME CUSTOMERS IN CERTAIN AREAS OF THE CITY? I MEAN ARE WE --

>> YES.

>> PERRY: -- TRYING TO CONTROL THAT AT ALL ON OKAY, WE'D LIKE YOUR HELP HERE VERSUS THERE, THAT KIND OF THING.

>> THEY'RE DEFINITELY COMPETITORS.

THEY'RE DEFINITELY COMPETITORS.

THEY'RE DEFINITELY PLANNING TO GO THE ENTIRE CITY.

AT&T, GOOGLE, VERIZON, THEY'RE PLANNING TO GO CITYWIDE AND COMPETE FOR THE CUSTOMERS, SO WE DO HAVE -- YEAH, ABOUT 4,000 MILES SO FAR OUT THERE.

>> PERRY: UH-HUH.

>> SCULLEY: WE'RE PROHIBITING FROM REGULATING WHERE THEY GO.

WE HAVE ENGOWRNLGED, GOOGLE, FOR EXAMPLE,, WHEN THEY CAME TO THE CITY, WE SUGGESTED THEY GO IN UNDERSERVED AREA, AND THEY CHOSE TO GO WHERE THEY FELT THEY COULD MAKE THE MOST MONEY.

>> PERRY: RIGHT.

OKAY.

SO HOW MANY TOTAL MILES ARE THEY EXPECTING TO INSTALL? THIS IS WHAT W THEY'VE INSTALLE, BUT HOW MANY MORE ARE THEY GOING TO BE INSTALLING ACROSS THE CITY? DO WE HAVE ANY KIND OF ESTIMATES ON THAT.

>> SO WE HAVE 4,000 SO FAR, WE'RE GOING TO TRIPLE, MARCUS, THAT NUMBER?

>> WE KNOW THAT THE ENTIRE CITY NETWORK IS ROUGHLY 4,000 MILE, BUT AT SOME POINT (INDISCERNIBLE) YOU CAN LOOK AT

[02:35:01]

THE MILES FOR EACH OF THESE PROVIDERS.

IF YOU'RE LOOKING AT THAT (INDISCERNIBLE) --

>> THIS IS MARCUS, OUR CAPITAL PROGRAM MANAGER OVER NOT JUST THE FIBER TEAM BUT ALL OF RIGHT OF WAY MANAGEMENT.

>> BUT PEOPLE LIKE -- WE KNOW THEY'RE DOING CERTAIN WORK FOR CUSSNERS, THEY'RE GETTING CUSTOMER SERVICE FOR CERTAIN PEOPLE, SCHOOL DISTRICTS, ET CETERA, SO THEY'RE A LITTLE BIT DIFFERENT THAN YOUR AT&T GOOGLES RIGHT, THE COMPANIES BUILDING OUT FOR RESIDENTIAL BUILDOUTS, COMPETING FOR THOSE HOMES AND THOSE DOLLARS THERE.

SO ZAYO CONTENT...

VERIZON, SOME OF THOSE.

>> IF VERIZON, GOOGLE AND AT&T FINISHED WHAT THEY'RE PLANNING TO DO, WHICH IS THE ENTIRE CITY, THEN YOU'RE GOING TO END UP WITH IN EXCESS OF 10,000 MILES OF FIBER.

>> PERRY: OKAY, THAT'S KIND OF WHAT I'M LOOKING FOR.

AND THEN FOLLOW ON TO THAT, OKAY, YOU WERE SAYING, SHERYL, YOU WERE SAYING THEY'RE GOING AFTER CERTAIN CUSTOMERS, THAT KIND OF THING.

SO ARE WE KIND OF FINDING THEM DIGGING UP EACH OTHER'S WORK OR INTERRUPTING A CUSTOMER THREE DIFFERENT TIMES OR FOUR DIFFERENT TIMES TO INSTALL --

>> THAT'S THE CHALLENGE.

OUR FIBER TEAM THAT IS WORKING WITH THEM ON THAT, BECAUSE THEY ARE-- NOW, AT&T SOME OF IT IS OVERHEAD, SOME OF IT IS UNDERGROUND, THEY HAVE THEIR EXISTING NETWORK THEY CAN ADD TO, THEY OWN A LOT OF POLES, OVERHEAD LINE, BUT VERIZON AND GOOGLE, THAT'S DIFFERENT, SO THEN IN TRENCHING.

THEY KNOW WHERE EACH OTHER IS, WE KNOW WHERE THEY'RE AT IN GOING IN, SO THEY HAVE TO PICK A PARALLEL SPOT TO GO.

SO THERE'S DEFINITELY A POSSIBILITY THERE WOULD BE MULTIPLE PROJECTS OVER TIME OVER CERTAIN FRONTAGES, GOOGLE HAS HAD A LOT OF SUCCESS WITH THE MICROTRENCH, THAT IS OPEN TO ANY AGENCY TO TEST THAT.

WE LIKE THAT BECAUSE IT DOESN'T GET INTO THAT LANDSCAPING AND DRIVEWAYS AND SO FORTH.

WE'D LIKE IT JUST INSIDE THE CURB IN THE ASPHALT, SO WE'RE ENCOURAGING THEM -- MORE OF THEM TO DO THAT.

>> OKAY.

THE SLIDE 36, I GOT -- WERE WE LOOKING AT FUNDING THAT IN OUR BUDGET FOR THIS NEXT YEAR? WHERE IS THAT $5 MILLION COMING FROM?

>> SO THAT IS PART OF THE FILO, THE REGIONAL FUND, THAT'S THE RECOMMENDED USE OF THAT FUND IS TO GO AFTER START THAT BIG PROJECT THAT IMPACTS -- WE KNOW THAT THE DRAINAGE ALL HEADS TO SOUTHERN PART OF SAN ANTONIO.

THAT'S A BIG WATERSHED THAT HAS NOT BEEN TOUCHED YET WITH PROJECTS.

THAT ULTIMATELY IS BIGGER THAN A CEILING CHANNEL PROJECT IN DISTRICT 7 WITH 450 HOMES IN THE FLOODPLAIN,IST'S A BIG IMPACT, MULTIPLE DISTRICTS, SO THAT'S OUR ENTIRE IS TO PUT A LOT OF THAT REGIONAL FUNDING INTO THIS PROJECT.

>> BUT THAT'S NOT -- THAT'S REGIONAL FUNDING, THAT'S NOT COMING OUT OF OUR GENERAL FUND.

>> RIGHT.

THIS IS STORM WATER DEDICATED FUND.

IT CAN ONLY BE USED FOR STORM WATER, NOT GENERAL FUND.

>> PERRY: OKAY.

ALL RIGHT. GREAT, THANK YOU, MIKE.

BEN? THANKS AGAIN, MIKE, AND Y'ALL'S STAFF.

SLIDE 16, WE'VE TALKED ABOUT THAT A COUPLE OF TIMES.

YEAH, THE COOS AND WE'VE HAD DISCUSSIONS ABOUT THE COOS, AND I UNDERSTAND WHAT THEY ARE, AND I UNDERSTAND THAT WE JUST KIND OF PROVE THOSE ON COUNCIL WITHOUT GOING TO THE PUBLIC FOR VOTES ON COOS, RIGHT?

>> AS LONG AS WE FOLLOW THE STATUTORY PROCESS, WE HAVE TO GIVE NOTICE TO THE COMMUNITY IN TERMS OF WHAT WE'RE GOING TO FUND WITH THOSE CERTIFICATES OF OBLIGATION, AND THERE ARE TIMING IN TERMS OF WHEN WE DO THAT, BEFORE YOU ALL CAN ACTUALLY ACT.

A PROCESS WE FOLLOWED TO GET ALL THOSE ISSUED.

>> WHEN YOU SAY STATUTORY --

>> STATE LAW --

>> DOES THAT INCLUDE HOW BIG THOSE CAN BE OR NOT.

>> NO, THERE'S NO LIMITATION ON THE SIZE OF THE CERTIFICATE OF OBLIGATION.

>> PERRY: RIGHT.

>> IT'S MORE OF THE PROCESS BY WHICH YOU INFORM THE PUBLIC OF YOUR INTENT TO ISSUE THAT DEBT.

>> PERRY: OKAY.

ALL RIGHT. GREAT.

AND THEN ON THOSE -- ON THOSE QUOTES FROM THE -- FROM THE MOODY'S AND S AND P, THOSE -- THAT SLIDE -- I DON'T RECALL

[02:40:02]

WHICH SLIDE THAT IS .

>> 22.

>> PERRY: YEP.

THERE'S -- I MEAN THERE'S NOTHING SAYING THAT IT WILL HAPPEN, IT'S JUST IT COULD HAPPEN.

AS.

>> AS I MENTIONED THE RATING AGENCIES DON'T OPINE OR SPECULATE ON THINGS THAT HAVEN'T HAPPENED YET.

AS SOON AS WE HAVE THE CONVERSATION WITH THEM, OR HAVE THE CONVERSATION WITH THEM, THEIR PERSPECTIVE IS, YOU HAVEN'T CALLED THE ELECTION YET.

ASSUMING THE ELECTION GETS CALLED, YOU HAVE TO SEE WHAT HAPPENS, RIGHT, WITH THE ACTUAL ELECTION.

THEY'RE NOT GOING TO TAKE ANY ACTION, NOR ARE THEY GOING TO WANT TO PUT THEMSELVES IN A POSITION WHERE THEY ARE SPECULATING ON WHAT MIGHT HAPPEN.

THEY'RE GOING TO WAIT UNTIL IT ACTUALLY DOES.

>> PERRY: OKAY.

>> AGAIN, FROM MY PERSPECTIVE, BASED ON THE CONVERSATIONS WE HAD WITH THEM, I WASN'T REALLY EXPECTING TO SEE ANY LANGUAGE IN OUR RATING REPORT, BECAUSE, AGAIN, THE CONVERSATIONS WE HAD WITH THEM, THEY'RE NOT GOING TO SPECULATE, BUT TWO OF THEM DID INCLUDE LANGUAGE, PRETTY STRONG LANGUAGE IN MY OPINION.

>> PERRY: OKAY.

ALL RIGHT. AND ALONG WITH THAT, WHAT ALL GETS -- WHAT ALL GETS KIND OF ADDED INTO OUR HEALTH OF THE CITY FINANCIALLY? WHAT ALL GETS ADDED IN?

>> FROM THE RATING SIDE?

>> PERRY: YEAH.

(INDISCERNIBLE).

>> THESE -- THESE ARE SOME OF THE COMMENTS THAT COME OUT OF THE RATING REPORT.

THIS ISN'T EVERYTHING THEY LOOK AT.

MOODY'S AND S AND P, HAVE A METHODOLOGY AND A SCORE CARD THAT LAY OUT EXACTLY HOW THEY'RE GOING TO VIEW THE ECONOMY, THE TAX BASE, FINANCIAL POSITION, OR LIQUIDITY POSITION, OUR DEBT POSITION, OUR PENSION POSITION, HOW THEY'RE GOING TO EVALUATE THAT, HOW THEY'RE GOING TO LOOK AT IT, HOW THEY'RE GOING TO SCORE THAT.

WITH MOODY'S WE END UP A DOUBLE A THREE.

THESE THINGS I'VE HIGHLIGHTED HERE ARE IN THE RATINGS REPORTS THEY HIGHLIGHTED AS BEING KEY FOR US, GROWING A VIBRANT ECONOMY.

YOU KNOW, THEY CALL SUPERIOR FINANCIAL RESILIENCE.

WHEN WE PUT TOGETHER THE FIRST BOND PROGRAM IN '07, RESILIENCE IS KIND OF THE NEW TERM.

WHEN WE WERE DOING IT, IT WAS ABOUT FLEXIBILITY AND ABILITY TO ADAPT TO CHANGING CONDITIONS, AND WE HAVE BUILT A PROGRAM AND A CREDIT PROFILE AROUND THAT.

THEY HIGHLIGHT THAT AND AS JORGE MENTIONED, S AND P EVEN NOTES THE U.S. GOVERNMENT IS NOT EVEN TRIPLE A BY ALL THREE.

THEY BELIEVE WE CAN RESPOND BETTER THAN THE U.S. GOVERNMENT.

I'LL TELL YOU ONE THAT IS BIG IS STRONG FINANCIAL POLICIES AND PRACTICE, IF I DON'T MENTION IT TO THEM, OUR POLICIES AND PRACTICES, I WILL GET A QUESTION OF DID YOU CHANGE ANYTHING, AND ARE YOU STILL FOLLOWING THOSE? IT'S REALLY KEY FOR THEM.

THERE'S SEVERAL OTHERS NOTED HERE AS WELL.

>> PERRY: RIGHT.

>> DID YOU WANT TO --

>> COUNCILMAN, IN EACH OF THE RATING AGENCIES, THEY GIVE DIFFERENT WEIGHTED MEASURES TO CERTAIN VARIABLES THAT THEY'RE GOING TO THROW INTO THIS MIX, AND FOR INSTANCE, IN THE CASE OF MOODY'S INVESTOR SERVICE, 30% OF THE WEIGHTING CRITERIA IS WEIGHTED TO THE ECONOMIC AND TAX BASE.

ADDITIONALLY, 20% OF THE WEIGHTING IS GIVING TO DEBT AND PENSION OBLIGATIONS, WHETHER OR NOT YOU'RE OVERBURDENED, HOW THEY VIEW YOUR DEBT AND PENSION PROFILE, AND ANOTHER 20% IS TO FINANCE -- I'M SORRY, 30% IS TO FINANCES AND 20% IS TO MANAGEMENT, AND SO THEY LOOK AT THE ACTUAL DAY TO DAY ADMINISTRATION OF THE ISSUER AND THEY VIEW THAT AND GIVE IT WEIGHT IN THAT -- IN THAT PROCESS AS WELL.

>> PERRY: OKAY.

YOU ACTUALLY HIT ON ONE OF THE KEY AREAS THAT I WAS THINKING ABOUT, AND THAT'S THE PENSION FUNDS.

>> YES, SIR.

>> PERRY: HERE IN SAN ANTONIO, WE HAVE VERY HEALTHY PENSION FUNDS.

BEN, IF YOU COULD SPEAK TO THAT A LITTLE BIT, THAT HELPS US IN THIS, AND ACCORDING TO TO YOU, IT'S 20%, THEY WEIGHT THAT 20%? ?

>> PENSION AND DEBT TOGETHER.

>> PERRY: OKAY.

>> SO IT'S NOT -- I THINK I ACTUALLY HAVE IT HERE.

IT'S PENSION AND DEBT TOGETHER.

SO WHEN YOU COMPARE OUR PENSION PLANS TO MANY MUNICIPALITIES ACROSS THE COUNTRY, OURS DO COMPARE VERY FAVORABLY, WE'VE GOT A STRONG FUNDED RATIO WITH THE FIRE AND POLICE PENSION FUND, WHICH IS OF COURSE THE FUND FOR OUR POLICE EMPLOYEE,

[02:45:01]

STATUTORY TRUST, AND IF YOU LOOK AT TMRS, OUR PENSION PLAN THAT'S IN PLACE FOR OUR CIVILIAN EMPLOYEES, IT'S A STATEWIDE SYSTEM, WE'RE ONE OF LIKE 800 CITIES THAT PARTICIPATE IN THAT FUND, IT ALSO HAS A STRONG FUNDED POSITION, SO THOSE CERTAINLY HELP IN THEIR CRITERIA, THE CRITERIA DON'T SPEAK TO HOW MUCH MONEY THEY'RE SPENDING ON PENSIONS, LOOKING AT HOW WE'RE ADDRESSING THAT UNFUNDED LIABILITY, HOW WE'RE MANAGING THAT.

>> PERRY: I THINK WE'RE VERY STRONG ON THAT.

>> WE PUT A LOT OF MONEY INTO OUR CIVILIAN AND FIRE AND POLICE PENSION PLANS FOR SURE.

>> SCULLEY: 110 MILLION ANNUALLY, SO WE PLAY VERY CLOSE ATTENTION TO THAT.

>> PERRY: AND THAT'S -- I KNOW WHEN THE FIRE AND POLICE, WE HAVE ABOUT THREE AND A HALF BILLION IN ASSETS, SO THAT'S A GOOD STOP GAP WHEN THESE RATING AGENCIES ARE LOOKING AT THAT IN THOSE AREAS.

GREAT, THAT'S ALL I HAVE, BEN.

THANK YOU VERY MUCH.

>> THANK YOU.

>> PERRY: APPRECIATE Y'ALL PUTTING THAT TOGETHER.

>> YES, SIR.

>> NIRENBERG: THANK YOU, COUNCILMAN PERRY.

I THINK THAT'S EVERYBODY.

BEN? MIKE, THANK YOU VERY MUCH FOR THE PRESENTATION.

WE'RE ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.